WTI tumbles further, closer to $50.00

Crude oil prices are trading in multi-day lows at the beginning of the week, dragging the barrel of West Texas Intermediate to the proximity of the critical support at the $50.00 mark.

WTI weaker on higher output, rig count

Prices of the barrel of WTI are down nearly 3% on Monday, as optimism among traders regarding the re-balancing of the oil markets continue to lose momentum.

In fact, WTI decrease further following news that Iraq and the OPEC increased their oil production during last month, while driller Baker Hughes reported late on Friday that US oil rig count went up by 6 to 750 active oil rigs.

The ongoing sell-off is forcing WTI to shed almost 5% since last week’s fresh tops in the boundaries of the $53.00 mark per barrel, opening the door for a potential visit to the $50.00 handle in the near term.

Furthermore, and according to the latest CFTC report, WTI speculative net longs climbed to 6-week tops during the week ended on September 26.

WTI significant levels

At the moment the barrel of WTI is losing 2.57% at $50.34 and a break below $50.08 (38.2% Fibo of $45.58-$52.86) would expose $49.91 (21-day sma) and finally $49.52 (200-day sma). On the flip side, the initial hurdle aligns at $52.86 (high Sep.28) seconded by $53.76 (high Apr.12) and then $55.24 (2017 high Jan.3).