Crude oil prices are extending the march north at the beginning of the week, lifting the West Texas Intermediate to the boundaries of the $51.00 mark per barreal, although losing some momentum soon afterwards.
WTI firm post-data
Crude oil prices found initial support following Friday’s report from driller Baker Hughes, recording the second drop in oil rig count, this time by 7 to 749 active oil rigs during the week ended on September 15.
In addition, US refineries are quickly returning to normalcy and recovering the activity after recent hurricanes Harvey and Irma.
Furthermore, recent reports from the IEA and EIA keep pointing to a better tone of crude oil demand in the global markets, propping up the rally in WTI.
Later in the week, the usual reports on US crude oil supplies by the API (Tuesday) and the EIA (Wednesday) are due along with Friday’s oil rig count by Baker Hughes.
On the positioning front, crude oil speculative net longs have eased to 2-week lows in the week to September 12, according to the latest CFTC report.
WTI significant levels
At the moment the barrel of WTI is losing 0.48% at $50.20 facing the immediate support at $49.58 (200-day sma) followed by $49.34 (23.6% Fibo of the August-September up move) and then $48.99 (10-day sma). On the other hand, a surpass of $50.84 (high Sep.18) would aim for $52.00 (high May 25) and then $53.76 (high Apr.12).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.