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  • The barrel of WTI is posting decent gains beyond the $42.00 mark.
  • US-China tensions, coronavirus fears keep dictating the sentiment.
  • API, EIA weekly report on crude supplies next of note in the calendar.

Prices of the American benchmark for the sweet light crude oil have started the week on a positive note, managing to reclaim the $42.00 mark per barrel and above.

WTI: Further rangebound on the cards

Crude oil prices regain the smile following two consecutive daily pullbacks, including fresh multi-month tops in the $43.50 region recorded on August 5).

In fact, better results from Chinese and EMU fundamentals have been lending support to prices and helped to improve the mood from the demand side. However, fears of a potential second wave of coronavirus contagion appear to keep traders cautious and the price action within the consolidative range.

Also supporting last week’s upside, the EIA reported a larger-than-expected drop in US crude oil supplies while Baker Hughes’ US oil rig count went down by 4 during last week, taking the US total active rigs to 176.

Later in the week, the usual reports by the API and the EIA will take centre stage on Tuesday and Wednesday, respectively, followed by the weekly report on US oil rig count.

WTI significant levels

At the moment the barrel of WTI is gaining 1.71% at $42.24 and faces the next resistance at $43.50 (monthly high Aug.5) seconded by $48.64 (monthly high Mar.3) and then $54.45 (monthly high Feb.20). On the downside, a breach of $39.29 (55-day SMA) would aim for $38.56 (monthly low Jul.10) and finally $34.38 (low Jun.15).