WTI off lows, still below $50.00

Crude oil prices are eroding part of last Friday’s moderate advance, taking the barrel of West Texas Intermediate slightly off daily lows in the $49.70/75 band.

WTI gains capped around $50.00

Prices for WTI are trading in the upper end of the recent range at the beginning of the week, while traders seem to have already digested the recent sharp sell off in the wake of the OPEC decision to extend the deal to cut the oil output for an extra 9 months.

The barrel of WTI briefly tested the vicinity of the $48.00 mark on Friday, although they somewhat managed to regain traction and reach the boundaries of the key $50.00 handle, losing some vigour afterwards.

Collaborating with the lack of a clear direction in prices, driller Baker Hughes reported on Friday another increase in US oil rig count, this time by 2 to 722 in the week ended on May 19.

Later in the week, the API will publish its report on US crude stockpiles on Wednesday ahead of the EIA’s report on inventories on Thursday.

WTI levels to consider

At the moment the barrel of WTI is losing 0.06% at $49.77 and a breach of $49.44 (55-day sma) would aim for $48.54 (20-day sma) and finally $48.18 (low May 26). On the upside, the next hurdle is located at $50.94 (100-day sma) followed by $52.00 (high May 25) and then $52.65 (high Apr.18).