WTI losing the grip near $57.70

• WTI weaker post-US oil rig count.
• Stronger USD also weighing on crude prices.
• API, EIA reports ahead in the week.

Prices of the barrel of the West Texas Intermediate are losing around 1% at the beginning of the week and are currently navigating the $57.80/70 band, or daily lows.

WTI weaker on rig count, US production

Prices of the barrel of the American reference for the sweet light crude oil are reverting part of last Friday’s advance to levels just shy of the critical $59.00 mark and have now returned to the $57.70 area, or session lows.

WTI is trading lower after driller Baker Hughes reported on Friday that US oil rig count went up by 2 last week, totalling 749 US active oil rigs. In addition, the US crude oil production increased to nearly 9.7 million barrels during last week as per the latest DoE report (Wednesday), also weighing on traders’ sentiment.

It is worth mentioning that the OPEC announced an extension of the current output cut deal for an extra 9 months at its meeting on November 30, leaving no room for surprises and somewhat disappointing those who were waiting for a more bullish move by the oil cartel.

Looking ahead, it will be a usual week for crude oil event-wise, with reports on US supplies by the API and the EIA expected on Tuesday and Wednesday, respectively.

WTI significant levels

At the moment the barrel of WTI is losing 1.13% at $57.70 facing the next support at $57.29 (low Dec.1) seconded by $57.14 (21-day sma) and finally $56.75 (low Nov.29). On the upside, a break above $58.88 (high Dec.1) would open the door to $59.05 (2017 high Nov.24) and then $62.58 (2015 high May 6).