WTI navigating session lows near $61.60/bbl

Prices of the barrel of the American benchmark for the sweet light crude oil are trimming some of its earlier gains above the $62.00 mark and have now receded to the $61.80 region.

WTI focused on API, EIA, USD

After four consecutive days posting gains, prices of the barrel of the West Texas Intermediate are now shedding some ground and returning to the area below the critical $62.00 mark amidst a continuation of the bid tone around the buck.

Prices of the WTI faded initial gains despite positive comments from OPEC officials earlier in the session, suggesting that the oil market should be balanced in Q3/Q4 2018 and that the supply glut that prevailed in recent years is fading faster than anticipated. These comments came in contrast with the view that increasing US oil production could offset the outcome of the ongoing OPEC output cut deal.

Ahead in the week, the API and the EIA will publish their weekly report on US crude oil supplies. On Friday, driller Baker Hughes reported US oil rig count went up by 8 during the previous week, taking the total US active oil rigs to almost 800.

WTI significant levels

At the moment the barrel of WTI is losing 0.90% at $61.77 and a breach of $60.80 (10-day sma) would open the door to $59.93 (61.8% Fibo of $55.74-$66.72) and finally $58.10 (low Feb.9). On the other hand, the next hurdle emerges at $62.72 (high Feb.20) seconded by $63.00 (21-day sma) and then $64.13 (23.6% Fibo of $55.74-$66.72).