WTI meets fresh supply, tests $ 62.50 ahead of US drilling data

WTI (oil futures on NYMEX) drops for the first time in eight days, moving away from two-week highs, as investors seek to take profits off the table ahead of the weekly US drilling sector activity report due later today.

The downward correction seen in the black gold is also on the back of souring sentiment, as rising US crude exports negated the impact of a drop in the US crude inventories while re-igniting oversupply worries.

The latest EIA report showed that the US crude exports jumped to just above 2 million barrels per day (bpd) last week, nearing a record high of 2.1 million hit in October last year while the crude stockpiles fell by 1.6 million barrels last week, to 420.48 million barrels.

Despite the renewed weakness, the barrel of WTI appears to find support amid a broad-based US dollar retreat, as Treasury yields return to the red zone across the curve. Markets now await the US rigs count data for fresh momentum on the prices.

WTI Technical Levels

At $ 62.61, the resistances are aligned at $63.09 (2-week tops), $63.55/59 (classic R1/ Fib R2) and $64 (round number). On the downside, the supports are located at $62.25 (5-DMA), $62.02 (20-DMA) and $61.58 (10-DMA).