WTI upside limited around $64.00
- Crude oil prices are down smalls after faltering around the $64.00 mark.
- The rally in prices of the WTI is facing resistance after two straight weeks.
- API, EIA reports next on tap. Powell’s testimony poises downside risks.
Prices of the black gold are grinding marginally lower at the beginning of the week, finding strong resistance in the boundaries of the key $64.00 mark per barrel.
WTI focused on data, Powell
After two consecutive weeks with string gains, the barrel of the West Texas Intermediate is now struggling to overcome the critical $64.00 mark despite the softer note prevailing around the buck.
In addition, traders quickly shrugged off another uptick in US oil rig count, as driller Baker Hughes reported on Friday that oil rigs went up by one to 799 active oil rigs during last week, the highest level since April 2015.
It is worth mentioning that disruptions in Libyan oil fields plus an unexpected drop in US oil supplies, as per the latest EIA report, have sustained the recent upside in WTI. Furthermore, the welling bias that prevailed around the greenback has also collaborated with the upbeat mood around prices.
Looking ahead, the usual reports by the EIA and the API are due later in the week. However, the semi-annual testimony by Chief J.Powell before Congress tomorrow will be a relevant driver for the buck this week and this could surely impact on oil prices.
WTI significant levels
At the moment the barrel of WTI is losing 0.38% at $63.41 and a break below $62.49 (21-day sma) would open the door to $61.83 (10-day sma) and then $60.88 (low Feb.22). On the flip side, the next up barrier emerges at $63.97 (high Feb.26) seconded by $66.35 (high Feb.2) and finally $66.72 (2018 high Jan.25).
