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WTI looks for direction around the $59.00 mark

  • WTI bounces off lows near $58.70 on Monday.
  • Crude oil keeps looking to trade, the Middle East for direction.
  • API, EIA reports coming up later in the week.

Prices of the barrel of the American reference for the sweet light crude oil have managed to regain some poise after bottoming out in the $58.70 region earlier in the day.

WTI focused on data, trade, geopolitics

The barrel of WTI briefly tested the area of 2020 lows near $58.70 during early trade, managing to pick up traction soon afterwards. in the meantime, crude oil is attempting to consolidate at current levels following last week’s sharp sell-off.

Diminishing tensions in the Middle East have been weighing on prices in past sessions, forcing the barrel of West Texas Intermediate to recede from tops near the $66.00 mark. However, renewed optimism on the imminent sign of the US-China’s ‘Phase One’ deal (January 15th) has given extra oxygen to the risk-associated complex and crude oil, somewhat limiting the downside.

Also supporting prices emerges another drop in the US oil rig count during last week. In fact, driller Baker Hughes said on Friday that US oil rigs went down by 11 to 659 total active oil rigs.

Later in the week, usual reports by the API and the EIA are expected on Tuesday and Wednesday, respectively.

WTI significant levels

At the moment the barrel of WTI is losing 0.31% at $58.95 and a break below $58.67 (2020 low Jan.9) would open the door to $57.75 (200-day SMA) and then $57.10 (100-day SMA). On the upside, the next hurdle aligns at $60.53 (50% Fibo of the December-January rally) seconded by $61.74 (50% Fibo of the December-January rally) and finally $65.66 (2020 high Jan.8).

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