WTI struggles to extend last week's gains, trades below $50

Crude oil is having a difficult time building on last week's gains with the barrel of West Texas Intermediate trading at $49.50, losing $0.20, or 0.4% on the day.

Although today's price action looks like a technical correction of last week's upsurge, the fact that a recent poll by Reuters suggested that analysts are expecting crude oil to remain under pressure might have put some extra weight on WTI as well.

According to poll results, U.S. light crude is expected to average $50.08 a barrel in 2017, down from $51.92 in June's forecast. "A few analysts expect the market to show a narrow deficit by the end of the year if OPEC sticks to its supply deal and US shale producers moderate their pace of drilling. Others believe the rebalancing could be pushed into next year,” Reuters said.

• Oil analysts more bearish as OPEC deal under scrutiny - Reuters Poll

Technical outlook

$50 (psychological level) remains as a critical resistance for the barrel of WTI. A daily close above this level could open the door for further gains towards $51.05 (May 22 high) and $42 (May 25 high). On the downside, supports could be seen at $48.85 (Jul. 28 low), $48 (psychological level) and $46.40 (Jul. 25 low).

• Oil: Volatility continues amidst weekend rally in prices - BBH