WTI attempts a rebound, still below $43.00

Crude oil prices are moving higher on Thursday, pushing the barrel of West Texas Intermediate away from yesterday’s fresh 7-month lows in the boundaries of the $42.00 mark.

WTI found support near $42.00

Prices of the barrel of the American benchmark for the sweet light crude oil are posting some decent gains on Thursday after bottoming out just above the critical $42.00 mark on Wednesday, recording fresh 7-month lows at the same time.

Traders remain wary as concerns over the supply glut appear everything but unabated, all in light of the increasing US oil production and rising scepticism over the ability of the OPEC deal to balance the oil market.

Recent decrease in US crude oil supplies, as reported by the EIA on Wednesday, seems to have brought in some respite for prices, although the broader bearish theme still prevails.

Ahead in the week, traders will look to the publication of US oil rig count by driller Baker Hughes on Friday. It is worth mentioning that US active oil rigs have been increasing uninterruptedly since the week ended on January 13.

WTI levels to consider

At the moment the barrel of WTI is up 0.63% at $42.80 and a break above $44.40 (23.6% Fibo of the May-June drop) would aim for $45.06 (high Jun.19) and then $46.29 (20-day sma). On the flip side, the support aligns at $42.05 (2017 low Jun.21) followed by $41.10 (low Aug.11 2016) and finally $39.19 (low Aug.3 2016).