WTI bounces off lows near $61.00, API, FOMC eyed

Prices of the barrel of the West Texas Intermediate are extending the weekly correction lower on Wednesday, so far managing to find dip-buyers in the $61.00 neighbourhood.

WTI looks to FOMC, API

Prices of the barrel of the black gold are retreating for the second session in a row today against the backdrop of the persistent bullish sentiment surrounding the greenback.

WTI is coming down after climbing to fresh weekly tops in the $62.70 region at the beginning of the week with no apparent catalyst other than USD-strength.

News from the OPEC noted the cartel might discuss a more permanent cooperation with Russia and other non-OPEC producers at its June meeting, something rumours have been started to call a ‘supergroup’.

It is worth mentioning that the up move in WTI seen in past months has been correlated with an increase in US crude oil exports, which in turn has drained supplies in Cushing and pushed prices higher.

On the data front, the API will publish its weekly report on US crude oil stockpiles later today ahead of the official report by the DoE tomorrow and US oil rig count by Baker Hughes on Friday. In addition, traders will closely follow the publication of the FOMC minutes and their impact on the buck.

WTI significant levels

At the moment the barrel of WTI is losing 0.65% at $61.31 and a breach of $60.76 (10-day sma) would open the door to $59.93 (61.8% Fibo of $55.74-$66.72) and finally $58.10 (low Feb.9). On the other hand, the next hurdle emerges at $62.72 (high Feb.20) seconded by $62.72 (high Feb.20) and then $62.85 (21-day sma).