WTI stuck in range around $ 63.50

Benefits from Saudi comments, weaker DXY.
Bullish drilling report also underpin.
Focus shifts to US weekly crude supplies data.

Dhwani Mehta FXStreet

After a volatile session witnessed on Friday, WTI (oil futures on NYMEX) extends its Asian consolidative phase, although remains underpinned by the remarks from the Saudi Arabian and Iraqi Oil Ministers.

The Saudi Oil Minister called for extending the cooperation between the OPEC and non-OPEC producers beyond 2018 to boost oil prices further. Meanwhile, the Iraqi Oil Minister noted that the oil market is heading in the right direction.

The barrel of WTI also finds support from the latest US drilling activity report published by the oilfields services company Bakers & Hughes on Friday. The report showed that the US drillers cut five oil rigs in the week to Jan. 19, bringing the count down to 747.

Further, resumption of broad-based US dollar selling also remains supportive of the USD-sensitive oil prices. Looking ahead, the focus now remains on the US crude inventories reports due to be reported by the API and EIA later this week for the next direction.

At the time of writing, WTI trades modestly flat at $63.38 while Brent gains +0.23% to $68.70.

WTI Technical Levels

The resistances are aligned at $64 (key support-turned-resistance) ahead of $64.50 (psychological levels) and 64.89 (3-year highs). On the downside, supports are located at $63 (round figure), $62.75 (20-DMA) and $61.80 (Jan 9 low).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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