WTI tested highs above $55.00 post-EIA

• EIA reported a bigger than expected draw in supplies.
• WTI broke above $55.00 per barrel on data.
• Crude oil prices underpinned by OPEC compliance.

Prices of the barrel of the American reference for the sweet light crude oil extended the rally on Wednesday, briefly breaking above the key $55.00 mark and flirting with YTD tops near $55.30.

WTI closer to 2017 peaks

Prices for the WTI rose further today after the EIA reported crude oil supplies decreased by 2.435 million barrels during the week ended on October 27.

Further data saw weekly distillates stocks down by 0.320 million barrels and gasoline inventories decreasing by 4.020 million barrels.

Additionally, supplies at Cushing rose by 0.090 million barrels.

The auspicious EIA report added to the already upbeat sentiment surrounding crude oil prices after the OPEC noted the compliance with the output cut deal remains strong, while expectations of a probable extension of the agreement beyond March 2018 keeps underpinning the bullish stance in prices.

WTI significant levels

At the moment the barrel of WTI is up 0.66% at $54.74 facing the next hurdle at $55.22 (high Nov.1) seconded by $55.24 (2017 high Jan.3) and finally $56.51 (low May 28 2015). On the flip side, a breach of $53.78 (23.6% Fibo of $45.58-$55.22) would open the door $52.91 (10-day sma) and then $51.85 (21-day sma).