WTI comes down to test $ 48.50, US rigs count data eyed

Having faced rejection just shy of $ 50 mark, oil futures on NYMEX extended its bearish momentum into a second day today, as omnipresent oversupply worries continue to dampen investors’ sentiment.

Over the last hour, the black gold made minor-recovery attempts amid stronger German industrial and construction data. Also, subdued trading activity seen around the greenback versus its main competitors lent support to the USD-sensitive commodity.

Oil prices came under renewed selling pressure a day before, after the latest reports showed that oil output levels continued to rise in Russia and the US, outweighing efforts by the OPEC to rebalance markets. In the United States, oil production has hit 9.43 million bpd, the highest since August 2015 and up 12% from its most recent low in June last year, Reuters reported.

Attention now turns towards the US employment data and drilling activity report from Baker and Hughes oilfield services company due later today for fresh impetus. At the time of writing, WTI skids -0.80% to $ 48.68 while Brent drops -0.87% to $ 51.55.

WTI technical levels 

The resistances are aligned at $ 49.25/30 (daily pivot/ 5-DMA), $ 49.50 (psychological levels), and $ 50 (key resistance) while supports are located at $ 48 (round number), $ 47.73 (20 & 100-DMA), $ 46.02 (round number).