WTI extends downward correction toward $62 ahead of US rigs data

WTI remains under bearish pressure after breaking below $63.
Broad USD strength is weighing on crude oil prices on Friday.
OPEC+ is reportedly is looking to ramp up production from April.

Eren Sengezer FXStreet

The barrel of West Texas Intermediate (WTI) touched its highest level in more than a year at $63.80 on Thursday but staged a deep correction on Friday. As of writing, WTI was down 1.8% on a daily basis at $62.30.

WTI looks to post impressive monthly gains in February

Earlier in the week, the US Energy Information Administration (EIA) reported a surprise 1.2 million barrels build in US crude oil stocks and limited WTI's gains. Additionally, the broad-based USD strength in the second half of the week amid surging Treasury bond yields is weighing on USD-denominated oil prices.

Meanwhile, Reuters reported on Wednesday that the Organization of the Petroleum Exporting Countries (OPEC) and allies, a group known as OPEC+, could opt-out to increase the oil production by 500K barrels per day from April. Sources familiar with the matter told Reuters that Saudi Arabia could start rolling out the voluntarily supply reductions as well.

Despite the recent pullback, WTI is still up more than 5% on a weekly basis. Furthermore, WTI remains on track to close the fourth straight month in the positive territory and is gaining nearly 20% in February.

Later in the day, Baker Hughes Energy Services' weekly oil rig count data for the US will be looked upon for fresh impetus.

Technical levels to watch for

WTI

Overview
Today last price	62.27
Today Daily Change	-1.01
Today Daily Change %	-1.60
Today daily open	63.28

Trends
Daily SMA20	58.59
Daily SMA50	53.81
Daily SMA100	48.05
Daily SMA200	43.97

Levels
Previous Daily High	63.72
Previous Daily Low	62.59
Previous Weekly High	62.25
Previous Weekly Low	58.58
Previous Monthly High	53.94
Previous Monthly Low	47.26
Daily Fibonacci 38.2%	63.29
Daily Fibonacci 61.8%	63.02
Daily Pivot Point S1	62.67
Daily Pivot Point S2	62.07
Daily Pivot Point S3	61.55
Daily Pivot Point R1	63.8
Daily Pivot Point R2	64.32
Daily Pivot Point R3	64.92

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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