WTI upside (still) capped around $40.00

By FXStreet Crude oil prices are extending their rally today, with WTI currently testing the area of $39.80 per barrel, or fresh YTD peaks.

WTI stronger on USD, output cut

Increasing hopes of a potential output cut at the April meeting between OPEC and non-OPEC members have been sustaining the rally as of late, while the generalized softer tone around the dollar after yesterday’s FOMC gathering has been also collaborating with the upside.

Ahead in the week, crude oil prices will remain vigilant on the US oil rig count tracked by driller Baker Hughes.

WTI levels to consider

At the moment the barrel of WTI is up 3.18% at $39.69 facing the next hurdle at $40.00 (psychological handle) and then $43.46 (high Nov.24 2015). On the flip side, a breakdown of $35.86 (100-day sma) would aim for $35.29 (20-day sma) and then $32.36 (55-day sma).
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Source:: FX Street