- Prices of the WTI are hovering around the $53.00 handle.
- US oil rig count dropped by 11 last week.
- API, EIA reports next of relevance later in the week.
Prices of the barrel of the West Texas Intermediate are trading within a tight range around the $54.00 mark on Monday.
WTI looks to trade
Crude oil prices have faded the initial spike to the $54.80 region, returning to the $54.00 area per barrel amidst lack of volatility and despite the mild bias towards the risk-associated complex.
In fact, prices of the barrel of WTI are alternating gains with losses following two consecutive daily advances, with the upside so far capped by the 10-day SMA near $54.80.
Further out, WTI appears supported by recent news citing the OPEC+ will most likely extend the current deal to curb oil production, while Russia’s V.Putin reiterated he is ‘comfortable’ with Brent trading in the $60-$65 range per barrel.
What to look for around WTI
Prices of the barrel of the West Texas Intermediate have now shifted their focus of attention to the more macro context: trade tensions, prospects of weaker oil demand in response to the projected global slowdown. This view has relegated – albeit temporarily – positive drivers coming in from the supply side, including the tight US market, the so-called ‘Saudi put’ and geopolitics.
WTI significant levels
At the moment the barrel of WTI is losing 0.26% at $53.84 and faces immediate contention at $50.54 (monthly low Jun.5) seconded by $47.39 (78.6% Fibo of the December-April rally) and finally $44.23 (2019 low Jan.2). On the upside, a breakout of $54.76 (high Jun.10) would aim for $58.47 (100-day SMA) and finally $59.50 (200-day SMA).
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