WTI climbs to multi-day highs beyond $53.00

• Prices of the barrel of WTI surpass the $53.00 mark.
• The now softer tone in the dollar sustains the upside in the commodity.
• The US economy expanded 4.0% QoQ during the October-December period.

Prices of the West Texas Intermediate navigate the area of multi-day highs past the $53.00 mark per barrel so far on Thursday.

WTI stays capped by $54.00

The barrel of the American reference for the sweet light crude oil regains upside traction in the second half of the week and manages to break above the $53.00 mark to clinch new 6-day highs.

The renewed selling pressure hitting the dollar gives extra legs to the rebound in crude oil prices, which have now shifted the attention to the key resistance region around the $54.00 yardstick.

The upside in WTI also offsets traders’ concerns regarding the larger-than-expected weekly build in US crude oil supplies, as reported by the EIA on Wednesday.

What to look for around WTI

Prices of the American reference for the sweet light crude oil are seen some correction from peaks near $54.00. Past news regarding Saudi Arabia (unilateral oil output cut), the decision of the OPEC+ to refrain from increasing oil production and further US fiscal stimulus already anticipated by traders collaborated with the upbeat mood surrounding the commodity, particularly in the first half of the new year. However, the relentless increase of coronavirus cases amidst the vaccine rollout coupled with fresh lockdown measures mainly in China and Europe keeps traders somewhat worried and recovery prospects tempered.

WTI significant levels

At the moment the barrel of WTI is gaining 1.37% at $53.33 and faces the next hurdle at $53.90 (2021 high Jan.13) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020). On the other hand, a breach of $47.20 (2021 low Jan.4) would expose $46.18 (low Dec.23) ahead of $43.94 (monthly low Dec.2).