- Prices of the barrel of WTI bounce off session lows, back near $65.00.
- Rising US oil production, probable OPEC+ output increase weigh on oil.
- FOMC meeting, API, EIA reports next on tap.
Prices of the West Texas Intermediate are prolonging the weak tone at the beginning of the week, hovering over the $65.00 mark per barrel after bottoming out near $64.80.
WTI looks to Trump-Kim meeting, US supplies
Prices of the American reference for the sweet light crude oil remain on the defensive on Monday, looking to regain the $65.00 mark and above while decent support has so far emerged in the $64.85/80 band.
WTI remains under pressure following increasing US crude oil supplies, record-high US oil production and US drilling activity in multi-month highs, as per latest reports by the EIA and driller Baker Hughes.
In addition, prices stay vulnerable and traders remain concerned over the likeliness that the OPEC+ could announce an increment of oil output by around 1 mbpd at the cartel’s meeting in Vienna later in the month.
Ahead in the week, the Trump-Kim meeting will gather all the attention tomorrow, seconded by the API report on US crude oil stockpiles. On Wednesday, the EIA will publish its weekly report on US supplies ahead of the key FOMC meeting.
On the positioning front, speculators trimmed their crude oil net longs to the lowest level since November 21 2017, according to the latest CFTC report for the week ended on June 5.
WTI significant levels
At the moment the barrel of WTI is down 0.75% at $65.06 and a breach of $64.19 (low Jun.5) would aim for $61.77 (low Apr.6) and finally $60.03 (monthly low Mar.8). On the upside, the next resistance emerges at $65.97 (10-day sma) followed by $67.58 (55-day sma) and then $68.55 (high May 30).
Share
