WTI sidelined around $54.00 ahead of API

• WTI stays in red around the $54.00 mark.
• Month-end flows, profit taking dominate sentiment.
• API weekly report expected late on Tuesday.

Prices of the West Texas Intermediate are trading on the defensive on Tuesday, extending the daily rangebound theme around the $54.00 mark per barrel.

WTI now looks to API

Prices for the WTI keep the upper end of the recent range around the $54.00 mark, always against the backdrop of firm expectations of an extension of the ongoing OPEC output cut agreement beyond March 2018.

Furthermore, month-end flows and profit taking are also playing their part today, as prices rose nearly 11% since October’s lows near the $49.00 handle to yesterday’s top just below $54.50.

On the not-so-bright side, headlines citing Iraq could boost its oil exports in order to compensate for recent supply disruptions seems to have removed some tailwinds from the rally in crude oil.

Looking ahead, the usual weekly report on US crude oil supplies by the American Petroleum Institute (API) is due later in the day followed by the EIA’s report on Wednesday and Baker Hughes’s oil rig count on Friday.

WTI significant levels

At the moment the barrel of WTI is down 0.13% at $54.08 and a break below $53.75 (low Oct.30) would open the door to $52.60 (10-day sma) and then $51.78 (50% Fibo of October up move). On the other hand, the next up barrier lines up at $54.94 (high Feb.23) seconded by $55.24 (2017 high Jan.3) and finally $62.58 (2015 high May 3).