WTI eases from tops, stays bid near $66.00
- Crude oil prices are prolonging the upside beyond the $66.00 mark.
- Better sentiment around the riskier assets is propping up the move.
- API, EIA, Baker Hughes in the limelight later in the week.
After clinching fresh multi-week tops beyond the $66.00 mark during early trade, the barrel of West Texas Intermediate have now sparked a correction lower to the current $65.60 region, turning negative for the day.
WTI focused on risk trends
Prices of the barrel of the American benchmark for the sweet light crude oil are grinding lower at the beginning of the week after recording fresh 2-month tops beyond the critical $66.00 milestone.
Concerns over the unabated march north of US crude oil production continue to weigh on traders’ sentiment and are collaborating with today’s down move. In fact, according to the latest report by the EIA, US crude oil output increased to more than 10.4 mbpd during last week, fresh all-time highs.
Furthermore, driller Baker Hughes reported late on Friday that US oil rig count – a proxy for future US production – went up by 4 to 804 active oil rigs, all adding to the downbeat mood around crude oil.
In the meantime, concerns over a potential US-China trade war, hopes of an extension into 2019 of the current OPEC/non-OPEC deal and geopolitical concerns stemming from the Saudi Arabia-Iran scenario remain poised to drive the sentiment surrounding oil for the next months.
On the positioning front, crude oil speculative net longs climbed to fresh 3-week tops during the week ended on March 20, as shown by the latest CFTC report.
WTI significant levels
At the moment the barrel of WTI is losing 0.08% at $65.70 facing immediate contention at $64.03 (low Mar.22) followed by $63.24 (10-day sma) and finally $60.03 (low Mar.8). On the other hand, a breakout of $66.38 (high Mar.26) would open the door to $66.72 (2018 high Jan.25) and then $77.95 (high Nov.21 2014).
