WTI drops to daily lows near $64.70 ahead of data

• WTI corrects lower to the $64.70 area.
• Higher USD weighing on prices.
• US oil rig count next on tap.

The barrel of West Texas Intermediate is losing ground after two consecutive daily advances and is now testing lows in the $64.70 zone.

WTI now looks to Baker Hughes

The upside momentum around crude oil prices is fizzling out on Friday, coming down to the current $64.70 region after hitting daily highs around $66.30, an almost 2% drop.

Optimism among trader has been boosted on Thursday following a Reuters report which noted the compliance with the current OPEC output cut deal rose to 138% during December, a tad higher than the previous print.

The RTRS news eclipsed the previous EIA report that showed a larger-than-expected build in US crude oil supplies along with an uptick in US oil production.

Closing today’s calendar, driller Baker Hughes will publish its weekly oil rig count (+12 prev to 759 active oil rigs).

WTI significant levels

At the moment the barrel of WTI is losing 1.74% at $64.72 and a break below $64.26 (21-day sma) would aim for $63.74 (low Jan.30) and finally $62.84 (low Jan.19). On the upside, the immediate hurdle is located at $66.30 (high Feb.2) seconded by $66.42 (2018 high Jan.25) and then 66.66 (high Dec.1 2014).