WTI tumbles further to the $60.60 area, rig count eyed

• Prices of the WTI extend the breakdown of the $61.00 mark.
• Risk-off trade, rising US oil production weighing on WTI.
• US oil rig count by Baker Hughes next on tap in the docket.

Prices of the barrel of the American reference for the sweet light crude oil remain entrenched into the negative territory, intensifying the recent break below the key $61.00 mark.

WTI weaker on Trump headlines, inventories

Prices of the black gold are clinching the fourth consecutive session with losses and stay on the way to close the week in red figures after two advances in a row (a weekly key reversal is on the making so far). Furthermore, WTI is losing nearly 6% since Monday’s tops above the $64.00 milestone so far.

Additionally, WTI is under pressure following the strong rebound in the risk-off sentiment in response to recent comments by President Trump on tariffs and subsequent jitters over further protectionist measures.

Also collaborating with the down move in WTI, US oil production is not giving any signs of mitigating, while inventories unexpectedly rose during last week, according to the latest report by the EIA (Wednesday).

Looking ahead, driller Baker Hughes will publish its weekly report on US oil rig count (+1 prev. to 799 active oil rigs).

WTI significant levels

At the moment the barrel of WTI is losing 1.37% at $60.56 and a break below $60.13 (23.6% Fibo of $66.72-$58.10) would aim for $59.02 (100-day sma) and finally $58.10 (2018 low Feb.9). On the flip side, the next up barrier emerges at $61.84 (21-day sma) seconded by $62.22 (10-day sma) and finally $64.30 (high Feb.26).