WTI turns negative below $ 61.50, lower rigs count still supports

USD rebound caps the upside.
A drop in the US rigs count underpins.
Weekly US crude supplies data eyed.

FXStreet Team FXStreet

WTI (oil futures on NYMEX) is seen consolidating the recent upmove, as the bulls gather pace for a sustained move above the $ 62 mark ahead of the weekly US crude stockpiles data release.

WTI capped by key resistance near $ 61.70

The barrel of WTI made several attempts to take on the recovery beyond $ 61.70 levels, the confluence zone of 5-DMA and daily pivot, but in vain, as the USD bulls remain in command, capping the upside in the USD-sensitive oil. A stronger US dollar makes the USD-denominated oil more expensive for the holders in foreign currencies.

However, the sentiment around the black gold remains underpinned by falling US crude inventories and a slight decline in the US rigs count for new production, which fell by five in the week to January 5, to 742, according to data from oil services firm Baker Hughes. Last Wednesday, the US commercial crude inventories fell by 7.4 million barrels in the week to Dec. 29, to 424.46 million barrels, the EIA report showed.

Attention now turns towards this week’s US crude inventory data from the US for fresh direction on the commodity. At the time of writing, WTI trades flat at $ 61.42 while Brent trades -0.22% weaker at $ 67.47.

WTI Technical Levels

The resistances are aligned at $62.20 (2-1/2 year tops) ahead of $62.58 (May 2015 high) and $63 (round figure). On the downside, supports are located at $61 (key support), $60.87 (10-DMA) and $60.00 (key psychological support).

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FXStreet Team

FXStreet

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