WTI retraces the bull run to $47.80 ahead of OPEC

Crude oil prices are now deflating from the earlier bull run to daily highs, prompting the barrel of West Texas Intermediate to slip back to the $47.00 neighbourhood.

WTI all eyes on OPEC

Prices for the WTI are rallying more than 4% after optimistic comments by Saudi’s oil minister, who said there are good chances of clinching a deal at today’s OPEC meeting.

In addition, and bolstering the upside, Iraqi oil minister said the country has agreed to cut its output.

WTI has tested 2-day tops near $47.80 following these comments, reverting yesterday’s sharp sell off to sub-$45.00 levels, coincident with the key 200-day sma.

Ahead in the day, the OPEC press conference is due after the closing bell in the Old Continent (16GMT), along with the weekly report on US crude inventories by the DoE.

Furthermore, it is worth mentioning that the API reported late on Tuesday that US crude oil stockpiles decreased by less than 800K barrels during last week, although supplies at Cushing increased by 2.3 million barrels.

WTI levels to consider

At the moment the barrel of WTI is advancing 4.78% at $47.41 facing the next hurdle at $47.80 (earlier spike Nov.30) followed by $49.22 (high Nov.22) and finally $50.54 (high Jun.22). On the other hand, the next support is located at $44.82 (low Nov.30) followed by $44.55 (low Nov.18) and then $43.81 (low Nov.14).