Oil prices were largely steady on Wednesday, hovering near a four-week high hit a day earlier after top exporter Saudi Arabia said it was determined to end a supply glut.
Brent crude, the global benchmark, was up 8 cents at $58.41 a barrel by 0437 GMT , after settling on Tuesday up 96 cents, or 1.7 percent. U.S. West Texas Intermediate crude was trading down 4 cents at $52.43.
Saudi Arabia’s Energy Minister Khalid al-Falih said on Wednesday the focus remained on reducing oil stocks in industrialized countries to their five-year average and raised the prospect of prolonged output restraint once an OPEC-led supply-cutting pact ends.
The Organization of the Petroleum Exporting Countries (OPEC), plus Russia and nine other producers, have cut oil output by about 1.8 million barrels per day (bpd) since January. The pact runs to March 2018, but they are considering extending it.
“OPEC is holding a line on the production cuts,” said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo. “Even though shale (output) is now rebounding, the stocks are drawing, and now we’re heading into the winter season, so the market is strong.”
Crude Oil prices finally moved out of and this is a good news for Crude Bulls. We have generated quite good profits so far from LONG Crude Oil trades. We still have LONG positions and our first target is 52.80. 53.60 is an important resistance and if the price can break out the resistance within this week, we may see 55.00 USD next week.
What are the intraday key levels of Crude Oil?
51.95 and 51.56 are the possible pullback levels which can be used as buying opportunities.
52.75 is the first target of the today. If the price breaks out 52.80, the price will test 53.10 and 53.40 levels.
Conclusion: We keep our LONG positions and will use pullbacks as buying opportunities.