Saudi Arabia is likely to support extending OPEC output cuts into the second half of 2017, according to a person familiar with the kingdom’s internal discussions.
It’s not clear there has been a final decision on an extension, which would also depend on the positions of other OPEC members and Russia, the person says, asking not to be named because the talks are private. The rumour caused quite a rebound on oil. The WTI has broken above 53.00, an important resistance. The next move will depend on API report due later today 9:40 pm GMT. Let us recal that OPEC nations will meet May 25 in Vienna to discuss rolling over for another 6 months the output cuts first implemented in January.
OIL Daily Chart
A break above 53.40 could be a bullish signal for oil. In such scenario a move towards 55.00 could be possible. source: xStation5