WTI weaker on Trump, bounces off lows near $58.00

• Prices of WTI remain on the defensive above the $58.00 mark.
• EIA reported a higher than expected build during last week.
• Trump once again said prices are too high.

Prices of the barrel of WTI are extending the downbeat mood in the second half of the week although the decline seems to have found decent support in the $58.00 neighbourhood for the time being.

WTI weaker of Trump criticized OPEC

WTI accelerated the daily correction lower after President Trump criticized once again the OPEC’s policy of higher crude oil prices, noting that the cartel should increase the production because oil prices are ‘too high’.

Prices of the barrel of the American reference for the sweet light crude oil came under downside pressure this week after the EIA reported an unexpected build of 2.8M barrels during last week, prompting prices to recede further after recording 2019 tops beyond the $60.00 mark on Tuesday.

In addition, crude oil is deriving extra selling pressure after news said Russia could struggle to join the rest of oil producer on an extension of the current agreement to curb production.

Moving forward, driller Baker Hughes will publish its weekly report on US oil rig count on Friday.

What to look for around WTI

Crude oil has managed to advance further north of the critical $60.00 mark per barrel earlier in the week, clinching at the same time fresh yearly highs in levels last seen in November 2018. Following the up move, the underlying bullish view in crude oil remains well in place on the back of the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iranian and Venezuelan crude oil exports. In addition, speculative longs continue to flow into the markets, reversing the downside that prevailed in late 2018. Further out, the OPEC+ could announce an extension of the current agreement to curb oil production at the cartel’s meeting in June.

WTI significant levels

At the moment the barrel of WTI is down 0.88% at $58.63 and faces the next support at $57.91 (low Mar.25) seconded by $57.80 (21-day SMA) and finally $54.37 (low Mar.8). On the upside, a breakout of $60.11 (2019 high Mar.26) would open the door for $61.67 (200-day SMA) and then $63.74 (61.8% Fibo of the October-December drop).