WTI weaker, below $49.00 ahead of API report

Crude oil prices remain on the defensive on Tuesday, with the barrel of West Texas Intermediate fading the rebound to the $49.00 mark after bottoming out in sub-$48.00 levels at the beginning of the week.

WTI up on rumours, down on rig count

Prices for the WTI showed some signs of recovery in response to rumours of a potential extension of the current OPEC output cut deal beyond the original timeline, although the bullish attempt run out of legs in the $49.00 neighbourhood.

Pessimism and scepticism around crude oil prices stay unchanged in recent weeks, as traders continue to gauge the impact on prices from the OPE agreement vs. the rising US production, as reflected by the persistent increase in active US oil rigs (+14 last week).

Late on Tuesday, the American Petroleum Institute (API) will release its weekly report on US crude oil stockpiles (-0.531 mb prev.) ahead of tomorrow’s official report by the DoE. In the US data space, speeches by Kansas City Fed E.George (2019 voter, hawkish) and Cleveland Fed L.Mester (2018 voter, hawkish) should keep the focus on the buck.

WTI levels to consider

At the moment the barrel of WTI is losing 0.22% at $48.79 and a breakdown of $47.84 (low Mar.20) would aim for $47.09 (2017 low Mar.14) and then $44.82 (low Nov.29). On the flip side, the next resistance lines up at $49.62 (high Mar.15) followed by $50.11 (high Mar.10) and finally $50.93 (100-day sma).