WTI down smalls around $62.00 ahead of API, EIA

Prices of the barrel of WTI are sidelined slightly below recent tops.
Recent data showed US active oil rigs climbed to 800 during last week.
As usual, the weekly report on oil supplies by API and EIA are next on tap.

Pablo Piovano FXStreet

Prices of the barrel of the West Texas Intermediate are alternating gains with losses so far on Monday and are currently hovering over the $62.00 mark.

WTI cautious on data, FOMC, trade

Prices of the American benchmark for the sweet light crude oil are trading a tad below last week’s tops around the $62.60 mark per barrel following another increase in US oil rig count tracked by Baker Hughes. This time, oil rigs went up by 4 to 800 active oil rigs during last week.

The uptick in oil rigs count plus rising US oil production are weighing on traders’ sentiment and somewhat eclipsing recent auspicious prospects of higher oil demand expected in 2019, as per the latest report by the IEA.

WTI should also stay wary of the upcoming FOMC meeting (Wednesday) and its impact on the buck. It is worth recalling that the Federal Reserve is expected to hike rates by 25 bps.

Later in the week, the API and the EIA will report on the US crude oil inventories on Tuesday and Wednesday, respectively.

WTI significant levels

At the moment the barrel of WTI is losing 0.27% at $62.09 facing immediate contention at $61.48 (10-day sma) seconded by $60.03 (low Mar.8) an finally $58.10 (2018 low Feb.9). On the upside, a surpass of $62.55 (high Mar.16) would open the door to $63.31 (high Mar.6) and then $64.30 (high Feb.6).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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