- WTI met resistance at the $58.00 mark.
- The 200-day SMA in the $57.40 region holds the downside.
- US oil-rig count shrunk to 671 active oil rigs.
Prices of the West Texas Intermediate are struggling to extend Friday’s gains and they have now returned to the sub-$58.00 mark per barrel.
WTI now looks to data, trade, OPEC
The WTI is losing further traction at the beginning of the week following Friday’s rejection from fresh 2-month highs near $58.70.
In fact, traders remain cautious amidst the lack of fresh headlines from the US-China ‘Phase One’ deal, while increasing US crude oil supplies and rumours that the OPEC could announce an extension of the ongoing output cuts at its meeting next month also collaborate with the price action around crude oil.
On the positive side, driller Baker Hughes reported on Friday the fifth consecutive drop in US oil rig count, this time by 3 and taking US active oil rigs to 671.
Later in the week, the API and the EIA will report on US crude oil inventories on Tuesday and Wednesday, respectively.
What to look for around WTI
The US-China trade developments remain the almost exclusive driver of crude oil prices for the time being along with the decision by the OPEC+ on whether to extend the current agreement that limits the oil production. Concerns around crude oil prices also find extra grip on the persistent build in US oil supplies and higher oil production.
WTI significant levels
At the moment the barrel of WTI is losing 0.51% at $57.55 and a breakdown of $57.44 (200-day SMA) would open the door to $55.92 (100-day SMA) and then $54.85 (monthly low Nov.20). On the upside, the next hurdle is located at $58.65 (monthly high Nov.22) seconded by $60.00 (psychological mark) and finally $60.86 (monthly high Jul.15).
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