WTI clings to gains above $44.00, oil rig count on sight

Finally some respite for crude oil prices, with the barrel of West Texas Intermediate posting some moderate gains in the $44.60 region.

WTI attention to Baker Hughes

Despite the current rebound, prices of the barrel of WTI – and crude oil in general – stay under heavy pressure, as traders remain sceptical on the effects of the OPEC/non-OPEC deal on prices and on rebalancing the oil market.

Prospects of higher US oil production, increasing output from Libya, Iraq and Nigeria have been adding to traders’ concerns as of late, while keeping the bearish note intact around crude oil.

In the meantime, prices for the WTI are retreating for the fourth consecutive week so far, almost fully fading May’s rally from YTD lows near $43.70 to pre-OPEC tops at the $52.00 mark.

Looking ahead, driller Baker Hughes will report on US oil rig count later in the NA session. It is worth mentioning that US active oil rigs have been increasing since early January.

WTI levels to consider

At the moment the barrel of WTI is up 0.45% at $44.66 with the next hurdle at $45.70 (76.4% Fibo of the May rally) seconded by $46.71 (high Jun.12) and finally $46.91 (61.8% Fibo of the May rally). On the other hand, a drop below $44.22 (low Jun.15) would open the door to $43.76 (2017 low May 5) and then $42.20 (monthly low Nov.14 2016).