WTI Price Analysis: More upside seems favored as Saudi discusses extension in oil cuts

• Oil prices have concluded their corrective move as Saudi proposes an extension in oil cuts.
• Better-than-expected Caixin Manufacturing PMI data has supported the oil price.
• WTI is looking for a breakout of the Rising Channel chart pattern.

West Texas Intermediate (WTI), futures on NYMEX, have rebounded after concluding its corrective move to near $71.00 in the London session. The oil price is expected to reclaim the intraday high of $71.60 as discussions about further extension in oil production cuts have deepened.

Saudi Arabia's Ministry for Energy announced it would be extending its production cut for crude for an extra month, as reported by Newswires.

Meanwhile, better-than-expected Caixin Manufacturing PMI data has supported the oil price. The economic data landed at 50.5 higher than the expectations of 50.2 but remained lower than the prior release of 50.9. It is worth noting that China is the largest oil importer in the world and decent factory activities have improved the oil demand outlook.

WTI is looking for a breakout of the Rising Channel chart pattern on an hourly scale in which each pullback is considered as buying opportunity for the market participants. The rally in the oil price will be further strengthened after a pattern breakout.

The 50-period Exponential Moving Average (EMA) is consistently providing support to the oil bulls.

The Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the upside momentum has been activated.

Should the asset break above the intraday high at $71.83, oil bulls would drive the asset towards June 08 high at $73.23 followed by the crucial resistance around $75.00.

On the flip side, a downside move below May 31 low at $67.12 will drag the asset toward the $65.00 support followed by the ultimate support around $64.31.

WTI hourly chart