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WTI bounces off lows near $57.40, API eyed

  • Crude oil prices on the defensive below $58.00.
  • Doubts on Russian support to an extension of OPEC deal weigh.
  • Focus remains on the OPEC meeting (Thursday).

Crude oil prices are extending the correction lower this week, pushing the barrel of West Texas Intermediate to sub-$58.00 levels, or weekly lows.

WTI weaker on OPEC concerns

Prices of the barrel of WTI are down for the second consecutive session on Tuesday in response to renewed jitters over the potential outcome of the OPEC meeting (Thursday).

Despite traders have almost priced in an extension of the OPEC output cut deal beyond March 2018, speculations remain high over the duration of the extension (6 or 9 months), while Russia still seems not entirely convinced of joining the move.

Also weighing on the downside, the Keystone pipeline (which transport the majority of Canadian oil to the US) is expected to restart its operations sooner than initially estimated.

Looking ahead, the API will publish its weekly report on US crude oil supplies later in the day, ahead of tomorrow’s official report by the DoE and Friday’s US oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is losing 0.76% at $57.67 facing the next support at $57.44 (low Nov.28) seconded by $57.09 (10-day sma) and finally $56.54 (21-day sma). On the flip side, a surpass of $59.05 (2017 high Nov.24) would aim for $62.58 (2015 high May 6) and then $77.83 (high Nov.21 2014).

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