WTI drops back to $ 64.50 mark ahead of US drilling data

• Bears continue to guard the $ 65.50 barrier ahead of US rigs data.
• Optimism fades over the Saudi Arabian production cuts news.

WTI (oil futures on NYMEX) trims gains and looks to test the $ 64.50 support, having failed to sustain above the $ 65 mark on several occasions.

The renewed selling seen around the black gold is mainly driven fading optimism fuelled by Saudi Arabia’s plans to extend the output cuts into 2019, as attention turns back towards the US crude supply scenario, with the US rigs count data due on the cards later today.

Also, rising concerns over a potential global trade wear amid the US-China trade angst weigh negatively on the risk-associated commodity, oil.

However, the prices continue to derive support from broad-based US dollar weakness and Morgan Stanley’s upbeat oil-price outlook. The US bank cited a pick-up in seasonal demand in the coming month and geopolitical risk as positives for oil prices.

WTI Technicals

At $ 64.69, the resistances are aligned at $ 65 (round number), $ 65.50 (key resistance) and $ 66.03 (classic R2/ Fib R3). On the flipside, the supports are located at $ 64.11 (daily low), $ 63.58 (Mar 21 low) and $ 62.73 (10-DMA).