WTI weaker near $ 53, rising US output weighs

Oil futures on NYMEX are seen trading range bound to lower so far this Monday, as the sentiment remains undermined by rising US production.

WTI rejected at 5-DMA ($ 53.13)

Currently WTI drops -0.53% to fresh session lows of $ 52.86, having failed to sustain a minor-recovery above $ 53 mark. Oil bulls gave away gains inspired by latest reports showing the OPEC and non-OPEC producers are highly in compliance to the output cut deal for the month of Jan.

The black gold remains under pressure on growing US crude output levels, which could partly overshadow OPEC’s efforts to limit output. The IEA predicted the total US output growth of 320,000 bpd in 2017 to an average of 12.8 million bpd.

Moreover, a rise in the US rigs count also added to the downbeat tone in the commodity. Meanwhile, capping the downside, the latest report from CFTC showed that Hedge funds and money managers boosted bullish wagers on WTI to the highest level since mid-2014.

Attention now turns towards the weekly US supply reports due later this FOMC week.

WTI technical levels

A break above Thursday’s high of $ 54.06 could yield a test of $ 55 (zero figure). While a breach of support at $ 52 (round figure) would expose the 100-DMA support of $ 50.13.