WTI remains in 2-month lows around the $58.00 mark/bbl

Prices of the West Texas Intermediate remain depressed so far this week, meandering the sub-$59.00 zone after falling as low as the $57.90/85 band earlier in the day.

WTI weaker on trade, supply concerns, looks to oil rig

Prices of the American reference for the sweet light crude oil are closing their biggest weekly drop since December 2018, shedding more than 10% since Monday’s peak just below the $64.00 mark per barrel.

Heightened US-China trade jitters and the impact on world growth remain the exclusive driver for the large drop in crude oil prices in spite of the absence of fresh developments around the issue in past sessions.

Furthermore, increasing US supplies – as per latest reports by the API and the EIA earlier in the week – are also adding to the sour sentiment among traders.

Moving forward, driller Baker Hughes will publish its weekly report on US oil rig count.

What to look for around WTI

Prices of the WTI are closing the week amidst a heavy selling note in the area of 2-month lows. Looking at the broader picture, unabated fears over the US-China trade war have been offsetting positive drivers supporting crude oil in recent weeks such as rising US-Iran tensions, turmoil in Libya, the so-called ‘Saudi put’ and the ongoing OPEC+ agreement to curb oil production. That said, it is expected that trade effervescence continue to drive the sentiment around the global assets, posing at the same time the immediate threat to the resumption of the bullish bias in crude oil.

WTI significant levels

At the moment the barrel of WTI is losing 0.05% at $58.01 and faces the next support at $57.88 (low May 24) followed by $54.37 (low Mar.8) and then $52.25 (200-week SMA). On the flip side, a break above $60.19 (200-day SMA) would aim for $61.54 (55-day SMA) and finally $63.74 (61.8% Fibo of the October-December drop).