- WTI deflates from tops near $59.30 per barrel.
- OPEC+ extends output cuts for an extra 9 months.
- API weekly report next on tap later in the NA session.
Crude oil prices are reversing Monday’s positive performance and recede from levels just beyond the $60.00 mark per barrel, or 2-month highs.
WTI looks to data, OPEC
Prices of the barrel of the West Texas Intermediate are grinding lower today despite the OPEC+ decided to extend the ongoing agreement to cut the oil production for an extra 9 months, which was largely anticipated by market participants.
From the speculative community, net longs in crude oil climbed to 3-week highs during the week ended on June 25, as per the latest CFTC report. In fact, traders kept adjusting to the increasing geopolitical jitters between Iran and the US, particlarly after the announcement of extra US sanctions.
Also weighing on traders’ sentiment, driller Baker Hughes reported on Friday the second consecutive uptick in oil rig count. This time, oil rigs went up by four during last week to 793 active oil rigs.
Later in the day, the American Petroleum Institute will publish its weekly report on US crude oil inventories ahead of tomorrow’s official report by the DoE.
What to look for around WTI
Crude oil prices are breathing some oxygen following the US-China trade truce, although a sustainable breakout of the psychological $60.00 mark still remains elusive. Despite the decision by the OPEC+ to extend the deal to curb oil production was in line with expectations, it remains another driver sustaining prices along with tight US markets, US-Iran effervescence and the so-called ‘Saudi put’.
WTI significant levels
At the moment the barrel of WTI is retreating 1.56% at $58.12 and faces the immediate support at $57.19 (38.2% Fibo of the December-April rally) seconded by $55.12 (21-day SMA) and finally $50.54 (monthly low Jun.5). On the flip side, a break above $60.12 (monthly high Jul.1) would aim for $60.73 (23.6% Fibo of the December-April rally) and finally $63.79 (monthly high May 20).
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