Crude oil prices dipped lower on Tuesday, after the comments from Iraqi oil minister Jabar al-Luaibi on a possible extension to the OPEC-led agreement to slash oil production. U.S. crude stockpiles rose for the third straight week.
On Wednesday, WTI Crude oil was trading at $50.27, up 0.74%.
Iraqi oil minister Jabar al-Luaibi said at an industry event in the United Arab Emirates: “Iraq and other OPEC members are considering options to its production-cut agreement, including an extension beyond March and a deeper output cut.” Further, he added: “All in all, the outlook seems to be bright and prices are rising,”.
The EIA inventory data is due to be released later on today.
Technical View
Crude oil four-hour chart continues in the “Ascending broadening wedge” pattern. Prices consolidated on the higher resistance area at $50.40 which indicates positive momentum. If prices do not break above the resistance line, it could lead towards the support line at $49.20.
On the second scenario, a break could lead towards $50.50-52.