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  • OPEC supply boost talks, rising US output overshadow tightening global markets.
  • Downside opening up towards 63.50 ahead of US GDP, rigs data.

WTI (futures on Comex) extends its corrective slide from half-yearly peaks into a third day today, now flirting with the 64 handle heading into the US Q1 GDP and rigs count data releases.

Despite the retreat, the US oil remains on track to book the eight straight weekly gain, the longest run of weekly gains in years, mainly in response to tightening global markets amid ongoing OPEC+ output cuts, Libyan supply risks and the US sanctions on Iran and Venezuela.

Last hour, the black gold extended losses and reached the lowest levels in three days at 63.87. The sell-off in oil prices can be mainly attributed to increased expectations that the OPEC and its allies will raise their output levels in a bid to balance the markets, given the reduction in Iran’s exports due to the US sanctions.

Moreover, the latest report that Russia is considering starting to supply clean oil via a pipeline on April 29, also collaborated to the downbeat tone around the barrel of WTI. On Thursday, Reuters reported, “Poland and Germany have suspended imports of Russian crude via the Druzhba pipeline, citing poor quality. The Czech Republic had also halted purchases.”

In the day ahead, traders look forward to the US Q1 GDP report and the Baker Hughes oil rigs count data for fresh trading directives, especially in light of surging US supplies and improving US economic outlook.

WTI Technical Levels