WTI tumbles to lows near $52.00, API eyed

Crude oil prices are extending the bearish note during the first half of the week, now dragging the West Texas Intermediate to the $52.00 neighbourhood per barrel, or daly lows.

WTI weaker ahead of API

Prices for the black gold are retreating for the second straight session so far today, shedding around $2 since last week’s peaks above the $54.00 mark per barrel.

WTI has been trading on a softer fashion after driller Baker Hughes reported last Friday another increase in US oil rig count. Increasing drilling activity could signal US producers are willing to expand its output, counteracting the effects of the agreement to limit the production, clinched by OPEC and non-OPEC countries in late November.

In addition, the strong rebound in the demand for the US Dollar is also weighing on the sentiment around crude oil.

Later in the NA session, the API will publish its weekly report on US crude oil stockpiles, ahead of tomorrow’s official DoE’s report. Recall that the latest report by the API showed a build in supplies of nearly 3 million barrels.

WTI levels to consider

At the moment the barrel of WTI is losing 1.68% at $52.12 and a breach of $51.96 (55-day sma) would aim for $50.91 (low Jan.18) and then $50.71 (low Jan.10). On the upside, the next hurdle is located at $53.24 (high Feb.7) followed by $54.34 (high Feb.2) and finally $55.24 (2017 high Jan.3).