WTI catches fresh bids on OPEC’s Barkindo, re-takes $ 52.50

Oil futures on NYMEX is seen reversing a brief to daily lows near $ 52.20 region, now accelerating the recovery-mode towards $ 52.50 levels, following the comments from the OPEC Secretary General Barkindo optimistic remarks.

The OPEC Chief noted that March compliance data shows higher conformity with OPEC and non-OPEC supply cut pact.

Oil prices dropped on Tuesday, after the US API crude stockpiles data showed that despite the fall in inventories last week, the crude stockpiles remain close to record highs.

Moreover, mixed news from Saudi Arabia also weighed negatively on the sentiment around the black gold. Saudi crude exports fell to 6.96 million bpd in February, from 7.7 million bpd in January, according to the Joint Organization’s Data Initiative (Jodi), at the same time, Saudi production rose to 10 million bpd in February, up from 9.75 million bpd the previous month.

Attention now turns towards the US government official figures on the crude reserves due to be published by the EIA later today.

WTI technical levels 

A break above $ 53 (round figure) could yield a test $ 53.76 (5-week tops) beyond which $ 54.44 (Mar 1 high) could be tested. While a breach of $ 52.24 (daily low) would expose the 52.05 (100-DMA), below which downside opens up for a psychological support at $ 51.50.