WTI volatile, $70.00 appears closer

Prices of the barrel of West Texas Intermediate are trading on the defensive at the beginning of the week, gyrating over the $69.00 mark after briefly testing lows in the $68.30 area.

WTI looks to OPEC, data

Prices of the WTI are struggling for direction at the beginning of the week, leaving behind three consecutive daily advances, including last Friday’s sharp up move following the key OPEC meeting.

It is worth noting that crude oil rallied on Friday after producers agreed to increase the oil output, although by a lesser amount than markets had already priced in. In fact, the OPEC+ said it will pump an extra 1 mbpd starting next month. The increase, however, is seen at around 700K bpd as many producers are already pumping at full capacity.

Later in the week, traders will shift back their focus to the usual reports on US crude oil stockpiles by the API (Tuesday), EIA (Wednesday) and the oil rig count by Baker Hughes on Friday.

WTI significant levels

At the moment the barrel of WTI is down 0.58% at $69.85 and a breakdown of $68.08 (55-day sma) would expose $66.45 (10-day sma) and finally $63.59 (low Jun.18). On the flip side, the next hurdle lines up at $69.51 (high Jun.22) seconded by $71.86 (high May 10) and then $72.80 (2018 high May 22).