WTI licking wounds after sell-off from Saudi lead highs

WTI has started to settle after a significant drop from $53.38 down to $52.33 lows and currently trades $52.56 spot.

WTI has dropped, despite comments from Trump when he said that the US dollar was too strong over the weekend. Also, Saudi Arabia's energy minister said compliance with production cuts will help the market reach a balance between supply and demand by the middle of the year, which should be bullish for oil, but the rally did not last long and the price has dropped back from the highs.

Focus remain with the OPEC deal that although is in its early stages, the members have appeared committed so far and underpins a bullish tone towards $60.00 even as U.S. production has increased.  Focus will now torn to US output again this week and the US crude stockpiles data from API on Wednesday before the official EIA report, scheduled for release on Thursday.  The 200 dma is the big level to the downside to watch at 47.20 while $55.00 comes as the next psychological level to the top side.