WTI keeps the narrow range below $68.00
- Crude oil prices are on the defensive on Monday, trading within a tight range.
- US oil rig count went up by 5 to 825 active oil rigs last Friday.
- US Core PCE showed prices went up by and annualized 1.9% in March.
Prices of the barrel of the West Texas Intermediate are extending the bearish mood on Monday, navigating a narrow range around $67.65/70.
WTI weaker on US BH
Prices of the WTI are down for the third session in a row albeit consolidating within a narrow range after hitting fresh multi-year peaks in the mid-$69.00 earlier in the month.
WTI came under renewed pressure after driller Baker Hughes reported US oil rig count went up by 5 during last week to 825 active oil rigs, the highest level since March 2015. Collaborating with the downbeat mood around crude prices, US oil production keep pushing higher to an all-time high of nearly 10.6 million barrels.
Somewhat preventing prices to drop further, traders keep looking to the likeliness of extra US sanctions to Iran as well as the probability of an extension of the current OPEC/non-OPEC deal into 2019.
Later in the week, the API will report on US crude oil supplies tomorrow ahead of the DoE’s report on Wednesday.
On the positioning front, speculative net longs in oil tumbled to 2-week lows during the week ended on April 24, according to the latest CFTC report.
WTI significant levels
At the moment the barrel of WTI is down 0.50% at $67.64 facing the next support at $66.28 (21-day sma) seconded by $65.56 (low Apr.17) and finally $63.89 (55-day sma). On the other hand, a break above $69.55 (2018 high Apr.19) would open the door to $69.66 (monthly high Dec.2014) and finally $70.00 (psychological level).
