WTI tops $51.00 and retreats afterwards

• The barrel of WTI reaches the $51.00 mark and above.
• The recent move by Saudi Arabia keeps oil prices supported.
• The EIA said supplies shrunk by more than 8M barrels last week.

Prices of the WTI surpassed the $51.00 mark per barrel earlier in the session, losing some ground soon afterwards.

WTI in multi-month peaks

The West Texas Intermediate extends the rally beyond the $51.00 level amidst persistent optimism among traders following the recent announcement by Saudi Arabia – the world’s largest oil exporter – to cut its domestic production by around 1M bpd for the next two months.

Also supporting the upside momentum around the commodity, the EIA reported on Wednesday that US crude oil supplies went down by more than 8M barrels during last week.

Additionally, traders seem to be supporting the view than crude oil production could be adversely affected under the Biden’s administration, which is also adding extra oxygen to the ongoing uptrend, commented some analysts.

WTI significant levels

At the moment the barrel of WTI is gaining 0.60% at $50.81 and faces the next up barrier at $51.26 (monthly high Jan.7) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020). On the downside, a breach of $47.20 (monthly low Jan.4) would expose $46.18 (low Dec.23) ahead of $43.94 (monthly low Dec.2).