Following the $1.50 bullish opening gap, WTI has entered a phase of upside consolidation just above the $81 mark, as investors digest the reports of sharp output cuts by OPEC and its allies when they meet on October 5.

Various media reported cited that the OPEC+ is considering slashing production by more than 1 million barrels a day but the alliance delegates said a final decision on the size of the cuts won’t be made until Wednesday.

Further, Reuters reported that Saudi Arabia is considering raising prices for most crude grades it sells to Asia in November, as the world’s top oil exporter expects demand to recover and Chinese refineries to increase output.

According to the median of the responses of five refining sources surveyed by Reuters, “the November official selling prices (OSP) for flagship Arab Light crude may rise by 25 cents a barrel.”

At the time of writing, the US oil is adding 2.20% on the day to trade at $81.18, having eased from the intraday highs of $81.71. The black gold has kicked off a fresh quarter on the right footing after losing 25% of its value last quarter.

On an hourly timeframe, WTI is defending gains above the flattish 50-Hourly Moving Average (HMA) located at $80.97. A sustained break below the latter will call for a retest of the next support levels around $80.50.

However, the Relative Strength Index (RSI) holds above the midline, suggesting that the further upside appears more compelling.

WTI: Hourly chart