WTI upside stalled ahead of $54.00

Crude oil prices are now retreating after three consecutive advances, with the barrel of West Texas Intermediate deflating to the mid-$53.00s for the time being.

WTI offered below $54.00

Prices for the black gold remain on the defensive at the beginning of the week, returning to the $53.55/50 band after a failed attempt to regain the $54.00 mark in early trade.

Data from driller Baker Hughes published on Friday showed US oil rig count increased by 8 to 591, adding to rising concerns of a potential pick up in US shale producers and thus prompting fears of the supply glut to resurface.

Prices for WTI remain offered after the OPEC released its monthly report. The OPEC now sees the global demand for crude oil increasing by 1.16 mbpd YoY to 95.60 mbpd in 2017.

Later in the week, the usual report on crude oil inventories by the API (Tuesday) and the EIA (Wednesday) are due along with testimonies by Chief J.Yellen, CPI figures and further Fedspeak.

On the positioning front, crude oil speculative net longs have been trimmed to 3-week lows during the week ended on February 7, according to the latest CFTC report, although they stay in extreme levels.

WTI levels to consider

At the moment the barrel of WTI is losing 0.63% at $53.52 and a breach of $52.90 (low Feb.10) would aim for $52.39 (55-day sma) and then $51.22 (low Feb.8). On the upside, the next hurdle is located at $53.90 (high Feb.13) followed by $54.13 (high Feb.10) and finally $54.34 (high Feb.2).