WTI stays weak above $45.00, data eyed

Crude oil prices are extending the decline at the end of the week, with the West Texas Intermediate hovering over the low-$45.00s per barrel ahead of key releases in the US docket.

WTI looks to Baker Hughes

Prices for the black gold tumbled further during the Asian trading hours, recording fresh 2017 lows in the $43.80/75 band, although they have recovered some buying interest after the opening bell in Euroland.

Supply glut concerns and rising uncertainty over the potential extension of the OPEC/non-OPEC output cut deal continue to weigh heavily on sentiment, forcing the WTI to shed more than 18% since April’s peaks near $53.80.

Furthermore, increasing US drilling activity continues to cast a shadow on the effectiveness of the OPEC deal to rebalance the oil market, while news that Libya has resumed its oil production has been also collaborating with the descent.

Later in the session, the usual weekly report on US oil rig count by driller Baker Hughes is due along with US Non-farm Payrolls and speeches by FOMC’s Yellen and Fischer.

WTI levels to consider

At the moment the barrel of WTI is retreating 0.55% at $45.27 and a breach of $43.77 (2017 low May 5) would expose $42.20 (low nov.14 2016) and then $41.10 (low Aug.11 2016). On the upside, the next barrier lines up at $45.63 (high May 5) seconded by $47.75 (high May 4) and finally $49.25 (200-day sma).