WTI dropped to lows near $63.30 ahead of API

• WTI near 3-week lows just above $63.00.
• Sell-off in riskier assets continues.
• API’s report on supplies comes next.

Crude oil prices are extending the negative start of the week and are now forcing the barrel of West Texas Intermediate to the area of 3-week lows in the vicinity of the $63.00 mark, down more than 1% for the day.

WTI now looks to API

Prices of the barrel of the black gold are down for the third session in a row today amidst the broad-based sell-off in the risk-associated space.

The barrel of the WTI accelerated the drop in response to the ongoing rout in riskier assets and is already losing around 5% since the start of the current month, when was hovering over the $66.00 limestone.

Fading optimism on the rebalancing of the oil market plus rising US oil rig count and production have been weighing on the traders’ sentiment, adding to the downside.

Looking ahead, the API will publish its weekly report on US crude oil supplies ahead of tomorrow’s official report by the DoE.

WTI significant levels

At the moment the barrel of WTI is losing 1.28% at $63.33 and a break below $63.12 (low Feb.6) would aim for $62.84 (low Jan.19) and finally $60.66 (55-day sma). On the upside, the immediate hurdle is located at $64.43 (21-day sma) followed by $65.00 (10-day sma) and then $66.35 (high Feb.2).