WTI: Upside loses steam near $ 52.70
|Oil futures on NYMEX is seen consolidating the recovery in the European session, hovering well below four-week tops reached last week at $ 52.94.
The black gold found renewed strength and advanced further this Monday, reversing a minor-dip to $ 52.30, amid resurgent demand and supply disruption concerns on reports of stalled production in the Libyan Sharara oilfield.
However, the upside appears capped as the US dollar consolidates near three-week tops against its major rivals. A stronger US dollar makes USD-denominated oil more expensive for the buyer in foreign currencies.
Moreover, rising US drilling also keeps the sentiment around oil somewhat undermined. Bakers and Hughes oilfields service report released Friday showed that another increase in the US rigs count - for the 12th straight week and taking the count to 672 rigs, which is the highest since August 2015.
Next of note for the commodity remains the upcoming US supply reports due later this week for fresh impetus.
WTI technical levels
A break above $ 52.94 (1-month top) could yield a test of $ 53.50/56 (psychological levels/ March 6 high) beyond which $ 54 (zero figure) could be tested. While a breach of $ 52.02 (100-DMA) would expose the psychological support at $ 51.50, below which downside opens up for a test of $ 50.77/74 (Apr 6 & 5 low).
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