WTI testing daily lows near $65.30

• WTI turns lower, eyes $65.00/bbl.
• USD-strength behind correction lower.
• API, EIA reports eyed.

Prices of the barrel of American benchmark for the sweet light crude oil are grinding lower at the beginning of the week, currently around the $65.40 region.

WTI recedes from multi-year tops

Prices for the WTI are trading on the defensive on Monday, retreating from recent multi-year peaks near the $67.00 mark recorded on January 25.

Despite the correction lower, prices remain propped up by the generalized positive sentiment surrounding the current rebalancing of the oil market, always against the backdrop of the ongoing OPEC output cut agreement.

It is worth mentioning that WTI gained nearly 60% since lows around the $42.00 mark seen in June 2017 to last week’s tops around $66.70.

Ahead in the week, the usual API and EIA weekly report on crude oil supplies are due ahead of the US oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is down 1.35% at $65.30 facing the next support at $64.65 (10-day sma) seconded by $63.52 (21-day sma) and finally $62.84 (low Jan.19). On the upside, a break above $66.42 (2018 high Jan.25) would aim for $69.66 (high Dec.1 2014) and then $77.95 (high Nov.21 2014).