WTI Crude oil settles at $47.80/bbl

The WTI Crude oil is settling at $47.80/bbl with a daily loss of 0.38% or 18 cents after dropping to $47.09/bbl during the opening hours of the NA session. Despite a correction in the US dollar index towards 99, the barrel of West Texas Intermediate was able to correct some of its daily losses amid a relatively higher risk appetite witnessed during the second half of the session.

The uncertainty over whether OPEC will extend its production cuts beyond June continues to take a toll on the demand while the production in the U.S. continues to rise as reflected by the latest Baker Hughes report, offsetting OPEC's efforts to balance the market.

Although the recent comments suggest an optimistic view of the oil market, investors don't seem to be convinced yet. Speaking at a conference in London, the Minister of Energy and Industry of Qatar, Mohammed Saleh Al Sada, argued that the oil supply and demand balance is almost right. Furthermore, Russia's energy minister Alexander Novak mentioned that there is an option to extend the deal beyond June in an interview on 'Bloomberg Markets.'

Goldman Sachs: OPEC cuts extension not warranted

Technical outlook

The daily high at $48.30 is the first hurdle followed by $48.70 (200-DMA) and $49.60 (Mar. 13 high). On the flip side, a break below $47.00 (psychological level/Mar. 22 low) could aim for $45.77 (Nov. 11 low) and then $45.00 (psychological level).