WTI consolidates losses near $ 58 mark
- Stronger DXY and rise in US rigs count weigh.
- Downside capped on OPEC cuts extension.
WTI (oil futures on NYMEX) paused its retreat from four-day tops of $ 58.88 and now consolidates the downside amid bearish US drilling activity report released last Friday.
WTI: Uptrend still intact
The black gold remains on the offers, as the sentiment remains dampened by a rise seen in the US rigs count data last Friday, while the ongoing rally in the US dollar on the back of the US tax reforms approval also collaborated to the drop in oil.
Baker Hughes Oilfield Services report showed that the US drillers added two oil rigs in the week to Dec. 1, bringing the total count up to 749, highest since September. Last Thursday, the producers agreed to extend those cuts of 1.8 million bpd until the end of next year.
Moreover, the latest comments from the Saudi Arabian Energy Minister also helped to stall the retreat in the commodity. Saudi EnergyMin: OPEC not planning to open taps and flood market
Focus now shifts towards the weekly US crude inventory reports due out on Tuesday and Wednesday, as the dust settles over the OPEC outcome. At the time of writing, WTI drops -0.84% to $ 57.94 while Brent declines -0.33% to $ 63.50.
WTI Technical Levels
Higher-side levels: $ 59.03 (2-year highs), $ 60 (psychological levels), $ 61.82 (June-mid 2015 high)
Lower-side levels: $ 57.27 (20-DMA), $ 56.32 (Nov 21 low), $ 56.00 (zero figure)