Crude oil prices are sharply lower at the beginning of the week, with the barrel of West Texas Intermediate testing lows in the $53.20 region.
WTI lower on USD bid tone, rig count
Traders turned bearish on crude oil following a moderate rebound in the greenback, pushing the US Dollar Index (DXY) back around the critical 100.00 handle as market participants seem to have left behind the mixed results from the US labour market.
In addition, concerns over the possibility that US oil producers could ramp up their output have re-emerged after driller Baker Hughes reported on Friday US oil rigs increased by 17 to 583 during last week (the largest level since November 2015).
The pick up in US shale production could offset the recently implemented oil output cuts by OPEC and non-OPEC countries, as per the agreement clinched in late November.
WTI remains well supported from the positioning side however, as speculative net longs remained at record levels during the week ended on January 31, according to the latest CFTC report.
WTI levels to consider
At the moment the barrel of WTI is losing 0.91% at $53.34 and a breach of $52.70 (20-day sma) would aim for $52.24 (low Jan.31) and then $51.89 (55-day sma). On the upside, the next hurdle is located at $54.22 (high Feb.3) followed by $54.34 (high Feb.2) and finally $55.24 (2017 high Jan.3).
You may be interested
81% of ICOs Are Scams, U.S. Losing Token Sale Market Share: ReportBrian Evans - Jul 15, 2018
Initial coin offering (ICO) promoters have been widely successful with regards to the quantity of projects they have been able to at least partially fund. On matters…
New Online Casino Reviews Website Launched – https://Casino.buzzBrian Evans - Jul 15, 2018
Online casinos are known to offer the most exciting games to casino game lovers. The online gambling industry is providing best opportunities to win real time money.…
Betting On The Blockchain – Creating The Global Standard For The Future Of BettingBrian Evans - Jul 15, 2018
BX, a blockchain-based betting and prediction market ecosystem, officially announced today an Initial Token Sale (ITO), to raise funds for its betting and market prediction ecosystem, designed…