WTI tumbles to lows near the $24.00 mark

• Prices of the WTI lose the grip and test the $24.00 area.
• WTI fades the earlier spike to levels above the $28.00 mark.
• US oil rig count coming up next on the docket.

Prices of the WTI are fading the initial move to the area above the $28.00 mark per barrel and have returned to the $24.00 neighbourhood at the time of writing, or daily lows.

WTI upside capped above $28.00

Volatility remains the name of the game on Friday after prices of the American benchmark for the sweet light crude oil managed to surpass the $28.00 mark per barrel earlier in the session, just to drop to the vicinity of the $24.00 mark soon afterwards

In fact, prices of the WTI climbed above $28.00/bbl during early trade after news from the WSJ said the US will impose production quotas on oil companies for the first time in nearly 50 years, adding at the same time that the US could impose sanctions against Russia amidst the current oil price war between this country and Saudi Arabia.

Later in the session, Baker Hughes will publish its usual weekly report on US oil rig count. Earlier in the week, the API reported a nearly 2M barrel build during last week.

What to look for around WTI

Crude oil prices remain under pressure and highly volatile amidst challenges from the demand side via the impact of the COVID-19 on the global economy, and particularly on the Chinese economy, which is the second largest oil importer in the world. Negative drivers on the supply side come from the ongoing Russia-Saudi Arabia price war, which it does not seem to subside any time soon.

WTI significant levels

At the moment the barrel of WTI is retreating 10.97% at $24.67 and a breach of $20.08 (2020 low Mar.18) would expose $17.12 (monthly low November 2001) and finally $10.65 (monthly low December 1998). On the upside, the next resistance aligns at $28.46 (high Mar.20) seconded by $29.23 (10-day SMA) and finally $36.28 (high Mar.11).