WTI looks for direction around $42.80
|Crude oil prices are alternating gains with losses on Friday, taking the barrel of West Texas Intermediate to the $42.70/80 region ahead of oil rig count results.
WTI found support near $42.00
Prices of the barrel of WTI remain under pressure today, losing ground for the fifth consecutive week and slightly up from Wednesday’s lows in the $42.00 neighbourhood, levels last traded in August 2016.
Rising oil production in US and Libya continue to add to renewed concerns over the potential supply glut and keep eclipsing the target of the recently extended OPEC/non-OPEC deal, which is, precisely, a rebalancing of the oil market.
Skepticism on the ability of the cartel to achieve its goal stays on the rise however, collaborating with the decline in prices and a further deterioration of sentiment.
Later in the session, driller Baker Hughes will publish its report on US oil rig count. It is worth mentioning that US active oil rigs have been increasing for the last 22 weeks, totaling 747 in the week ended on June 16.
WTI levels to consider
At the moment the barrel of WTI is up 0.07% at $42.77 and a break above $44.40 (23.6% Fibo of the May-June drop) would aim for $45.06 (high Jun.19) and then $45.94 (20-day sma). On the flip side, the support aligns at $42.05 (2017 low Jun.21) followed by $41.10 (low Aug.11 2016) and finally $39.19 (low Aug.3 2016).
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