WTI down 3%, testing 2018 lows near $ 53 amid oversupply worries

• Bears in control amid the mounting supply glut and global growth concerns.
• Downside opening up towards the 52 mark, late 2017 levels.

WTI (oil futures on NYMEX) extended its bearish momentum on Friday and went onto test 2018 lows of 52.77 before finding some fresh buyers near the last.

Despite the stalled selling, the black gold looks vulnerable and could test the 52 level, as the bears take a breather and await fresh impetus for the next leg lower. WTI remains on track for its seventh straight weekly decline, meandering near the lowest levels since Oct 2017.

The ongoing weakness seen around the barrel of WTI is mainly driven by growing fears that the supply overhand could soon return to the markets, as the US output levels remain at a record high and Iran remains defiant and continues with its oil exports.

The latest US Energy Information Administration (EIA)  data showed that the US commercial crude oil inventories climbed by 4.9 million barrels to 446.91 million barrels last week, its highest level since December while the crude output levels stayed at a record a record 11.7 million bpd.

Additionally, looming concerns over global crude demand amid economic slowdown fears also continues to remain a drag on oil prices. According to the latest Reuters data, oil prices have plunged by around 30% since their last peaks in early October.

WTI Technical Levels