Crude oil prices have come under renewed selling pressure on Monday, now sending the barrel of West Texas Intermediate to the area of daily lows near $47.50.
WTI weaker on supply concerns
Prices for the barrel of the American benchmark of the sweet light crude oil have retreated further at the beginning of the week, losing ground for the second consecutive week although finding some decent support in the $47.00 neighbourhood.
Prices for the WTI met extra selling pressure after Baker Hughes reported its 10th consecutive increase of oil rig count on Friday, this time active oil rigs rose by 21 to 652.
Rising US drilling activity continues to sustain prospects of increasing US oil production, in turn fuelling supply glut fears and collaborating with the scepticism around the effectiveness of the OPEC/non-OPEC output cut deal.
Adding to crude oil offered bias, speculative net longs have decreased to the lowest level since mid-December in the week to March 21, as per the latest CFTC report.
WTI levels to consider
At the moment the barrel of WTI is losing 0.85% at $47.56 facing the next support at $47.08 (2017 low Mar.22) followed by $44.82 (low Nov.29). On the upside, a surpass of $48.48 (high Mar.23) would open the door to $48.68 (200-day sma) and finally $49.62 (high Mar.16).
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