WTI tumbles to 2-week lows near $68.50

Prices of the WTI lose momentum to the mid-$68.00s.
Higher US supplies, news on increasing OPEC output weigh on oil.
Later in the session, Baker Hughes will publish US oil rig count.

Pablo Piovano FXStreet

Prices of the American benchmark for the sweet light crude oil are sharply lower at the end of the week, taking the barrel to the mid-$68.00s area, or 2-week lows.

WTI weaker on OPEC, US supplies

Prices of the barrel of West Texas Intermediate came under renewed and strong selling pressure on Friday, giving away part of the recent gains and retreating to levels seen earlier in the month around $68.60/50.

WTI is shedding further ground today after the EIA reported on Wednesday that US crude oil supplies unexpectedly rose by almost 5.8 mbpd during the week ended on May 18, while US oil production stayed at all-time highs beyond 10.70 mbpd.

Further downside pressure on WTI came after the US government expressed concerns over the high prices of crude and OPEC and Russia said they could announce an increment of their production at the next meeting of the carte next month.

Later in the NA session, Baker Hughes will publish its weekly report on the US drilling activity.

WTI significant levels

At the moment the barrel of WTI is losing 2.73% at $68.62 facing the next down barrier at $67.65 (low May 8) seconded by $66.94 (55-day sma) and finally $66.86 (low May 1). On the flip side, a breakout of $70.27 (21-day sma) would aim for $71.20 (10-day sma) and then $72.80 (2018 high May 22).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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