WTI bounces off $40.50 ahead of rig count

Crude oil prices are now showing signs of life, with the West Texas Intermediate looking to rebound from fresh lows in the mid-$40.00s per barrel.

WTI in 3-month lows

Prices for WTI are closing their second consecutive week with losses, slipping back below the key support at the $41.00 mark and opening the door for a potential test of the psychological handle at $40.00 per barrel.

WTI already shed over 20% since 2016 peaks in the vicinity of $52.00 posted in June, amidst the resurgence of supply glut concerns and profit taking.

Later in the session, driller Baker Hughes will release its US oil rig count, which has been increasing in recent weeks and adding concerns over the supply glut.

WTI levels to consider

At the moment the barrel of WTI is losing 0.97% at $40.74 and a break below $37.61 (low Apr.18) would open the door to $35.96 (low Mar.15) and finally $35.24 (low Apr.5). On the flip side, the initial up barrier aligns at $44.40 (20-day sma) ahead of $45.79 (100-day sma) and then $46.93 (high Jul.12).