WTI comes under pressure below $63.00, looks to OPEC, API report
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WTI comes under pressure below $63.00, looks to OPEC, API report

  • The barrel of WTI erodes Monday’s gains, trades in sub-$63.00 zone.
  • Trade, geopolitics keeps ruling traders’ sentiment.
  • The API weekly report on US supplies is coming up next.

Prices of the West Texas Intermediate are receding from earlier tops and are now returning to the $63.00 neighbourhood ahead of the usual weekly report by the API.

WTI focused on trade, data, OPEC

Prices of the barrel of the American reference for the sweet light crude oil met moderate resistance in the 63.70 region during early trade, coincident with a Fibo retracement of the October-December sell-off.

The probability that the OPEC+ could extend the ongoing agreement to curb oil production beyond June has been sustaining the initial up move in prices, although unabated US-China trade jitters continue to heavily weigh on the sustainability of further gains.

Later in the day, the API will publish its weekly report on US crude oil inventories ahead of tomorrow’s official report by the DoE and Friday’s oil rig count by driller Baker Hughes.

What to look for around WTI

Prices of the WTI appear to have met some moderate resistance in the $63.70 region, or multi-day peaks. In the broader picture, and supporting prices, appear rising US-Iran tensions, turmoil in Libya, the so-called ‘Saudi put’ and the ongoing OPEC+ deal to cut oil output. However, US-China trade concerns remain far from abated despite the lack of fresh headlines as of late and emerge as the main hurdle for a more serious advance in crude oil.

WTI significant levels

At the moment the barrel of WTI is losing 0.41% at $62.86 and faces the next support at $60.32 (200-day SMA) followed by $59.98 (low May 6) and finally $59.63 (50% Fibo of the October-December drop). On the flip side, a break above $63.74 (61.8% Fibo of the October-December drop) would aim for $64.66 (high Apr.30) and then $66.46 (2019 high Apr.23).

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