WTI rally unabated ahead of oil rig count, around $45.30

Crude oil prices are extending further its march north today, now lifting the West Texas Intermediate to the $45.30 region ahead of the NA session and key data.

WTI focus on data

Prices of the barrel of the American reference for the sweet light crude oil are up for the seventh consecutive session so far today, gaining more than $3 since last week’s fresh YTD lows in levels just above the $42.00 mark.

Despite the ongoing up trend, traders stay worried on the prospects of rising US oil production, heightened scepticism around the ability of the OPEC deal to balance the oil markets and increasing output in countries such as Iraq and Libya. On top of this, jitters over the likeliness of a supply glut remain everything but diminished, all weighing on traders’ sentiment.

Looking ahead, Baker Hughes will publish later in the session its report on US drilling activity. Recall that US active oil rigs have been increasing since mid-January, totalling 758 at the moment.

WTI levels to consider

At the moment the barrel of WTI is up 0.82% at $45.30 and a break above $45.41 (high Jun.30) would pave the way for a test of $45.85 (38.2% Fibo of the May-June decline) and finally $46.71 (high Jun.12). On the other hand, the next down barrier is located at $44.40 (23.6% Fibo of the May-June decline) seconded by $42.05 (2017 low Jun.21) and finally $41.10 (low Aug.11 2016).