WTI looks for direction below $72.00 ahead of oil rig count

  • Prices of the WTI area treading water in the $71.60 region.
  • Rally in WTI clinches its third consecutive week so far.
  • Later in the NA session, Baker Hughes will report on US drilling activity.

Prices of the American reference for the sweet light crude oil are extending the sideline theme in the upper end of the range in the $71.60 region per barrel, still at shouting distance from earlier multi-year tops beyond the $72.00 mark.

WTI now looks to data

Prices of the barrel of West Texas Intermediate are prolonging the upside for the third session in a row today, flirting with multi-year tops in sub-$72.00 levels for the time being.

Declining US crude oil supplies in combination with the likeliness of US sanctions against Iran and the critical situation in Venezuela has been underpinning the multi-week rally in crude oil.

In addition, albeit premature for the time being, traders have not ruled out an extension of the OPEC+ output cut deal beyond its original deadline by year-end.

Looking ahead, Baker Hughes will publish its usual weekly report on US drilling activity.

On another front, crude oil could come under some pressure in light of some recent deterioration in the US-China trade talks.

WTI significant levels

At the moment the barrel of WTI is gaining 0.01% at $71.67 facing the next up barrier at $72.30 (2018 high May 17) followed by $73.00 (psychological level) and then $77.77 (high Nov.21 2014). On the flip side, a breakdown of $71.04 (10-day sma) would aim for $69.60 (21-day sma) and finally $66.86 (low May 1).

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