WTI off lows, near $49.60 ahead of US Payrolls

The downside pressure around crude oil prices is now taking a breather, pushing the barrel of West Texas Intermediate to the mid-$49.00s ahead of key US data.

WTI attention to Payrolls, Baker Hughes

Prices for the American benchmark of the sweet light crude oil are seen some respite after the recent sharp sell-off to fresh 2017 lows in the $48.60/50 band, managing to retake the $49.00 mark and beyond ahead of key US data releases.

The barrel of WTI met increasing selling pressure earlier in the week following persistent concerns over the supply glut, while traders remain sceptic over the impact on prices of the output cuts deal clinched by OPEC and non-OPEC members in late December and running since January 1.

Jitters over the supply glut have re-emerged and picked up extra pace in light of the increasing US drilling activity, which has been rising for the last seven weeks according to the weekly report by drilling Baker Hughes and keep fuelling prospects of higher US output.

Later in the session, US Non-farm Payrolls and the weekly report on oil rig count by driller Baker Hughes are due.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.63% at $49.63 with the next hurdle at $50.84 (high Mar.9) followed by $50.96 (100-day sma) and finally $52.95 (55-day sma). On the flip side, a breach of $48.74 (200-day sma) would expose $48.59 (low Mar.9) and finally $44.82 (low Nov.29).