WTI settles below $53 on rising US production

WTI crude oil came in under pressure during the NA session as the latest data by Baker Hughes Inc. showed that the number of crude oil rigs rose by 11 to 683 this week, marking the highest total since April 2015. 

The continuously increasing number of oil drills suggest that the production in the U.S. is likely to rise. Furthermore, yesterday's data showed that the weekly EIA inventory recorded a drop after three straight weeks of buildup.

• EIA: U.S. crude oil inventories decreased by 2.2 million barrels from the previous week
• IEA monthly report: Oil market is now 'very close' to reaching a balance

Even after today's fall, the barrel of WTI is still up more than $5 in April amid heightened expectations of OPEC extending the output reduction to the second half of the year.  

Technical outlook

The WTI faces the initial short-term resistance at $53 (psychological level) followed by $53.40 (daily high) and $53.80 (Apr. 13 high). To the downside, supports could be seen at $52 (psychological level), $51.50 (Apr. 7 low) and $50 (psychological level).