Crude futures continued their impressive rise on Friday as investors are pricing in another supply cut from OPEC at their March 15th meeting. Setting new March highs, crude futures are now approaching February highs.

While February highs and the psychological $50/bbl pose a hefty near-term struggle, if the futures can manage to break through these obstacles we should see some serious gains. However, there still is a considerable downtrend at hand. Therefore, despite increasing supply cuts from OPEC, the demand side of the equation may be too much to overcome.

The OPEC cuts are having their desired impact thus far. Crude surpluses are declining again and the recent rise of U. S. crude is reducing the incentive of Contago. The U. S. won't be releasing any significant economic data until Thursday, giving Crude time to rally between now and weekly Crude Oil Inventories.

Fundamentally, we find supports of $45.72/bbl, $45.09/bbl, $44.59/bbl, and $43.77/bbl. The $45/bbl level becomes a psychological cushion while $50/bbl serves as a key psychological barrier. To the topside, we see resistances of $46.59/bbl, $47.12/bbl, $47.85/bbl, and $48.64/bbl. Crude futures are currently trading at $45.79/bbl.

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