WTI dips below $ 59 mark ahead of EIA data

WTI (oil futures on NYMEX) ran through fresh supply in the European session, extending its losing streak into a third day today, as the bears aim to test multi-week lows of $ 58.07 on re-emergence of oversupply concerns.

The latest bearish API and IEA reports continue to undermine the sentiment around the black gold, as rising US output levels remain a threat to the efforts made by the OPEC and non-OPEC producers to re-balance the oil market.

The IEA said in its report that the non-OPEC supply, led by the US, is likely to grow more than the demand in 2018 while the API data showed that the US crude stockpiles rose by 3.9 million barrels in the week to Feb. 9, to 422.4 million.

The barrel of WTI shrugged-off optimistic remarks from the OPEC’s Secretary General Barkindo as well as that from the Saudi Arabian Energy Minister Al-Falih, both sounding confident on the OPEC output cuts deal compliance.  

Markets now look forward to the official US government figures on the crude stockpiles due later on Wednesday, which will provide fresh details on the US supply-side scenario.

WTI Technical Levels

At $ 58.86, supports are located at $ 58.50 (psychological levels), $58.07 (multi-week lows) and $57.87 (Dec 22 low). On the upside, the resistances are aligned at $59.30 (daily top) ahead of $59.65 (classic R1) and $60.00 (round figure).