WTI corrects from over 3-month tops near $ 57.80

• Supported by tightening supplies amid OPEC cuts and US sanctions on Venezuela.
• Firmer US dollar, economic slowdown fears cap gains ahead of US data.

WTI (oil futures on NYMEX) is seen extending its corrective slide from over three-month highs reached at 57.83 in late-Asia. But the bulls manage to retain control, keeping the rates well above the 57 handle.

The black gold extended its four-day winning streak and reached the highest levels since early November 2018, as upbeat US growth figures combined with the risk-on rally in the global stocks lifted the demand for the higher-yielding oil.

The main catalyst behind the surge is the tightening of the global supplies, in the face of a 40% drop in the Venezuelan exports drop by 40% since the US sanctions on January 28^th. Further, the deepening of the OPEC output cuts also adds to the tighter oil markets and underpins the sentiment around oil.    

However, last hours, the barrel of WTI moved away from multi-month tops, as broad-based US dollar strength combined ongoing global economic slowdown fears dampened somewhat investors” sentiment, as attention now turns towards a fresh batch of US macro releases, including the critical ISM manufacturing PMI report due at 1500 GMT.

Also, of relevance remains the Baker Hughes oil rigs count data slated for release at 1800 GMT for fresh direction.

WTI Technical Levels