WTI tumbles to lows near $61.30 ahead of API, EIA

• Crude oil prices are reverting the initial up tick to the $62.30 area.
• There are no visible catalysts to motivate crude oil to break the sideline theme.
• Next on tap will be the API, EIA reports on Tuesday and Wednesday, respectively.

Prices of the barrel of the American reference for the sweet light crude oil are extending the daily leg lower and testing session lows in the $61.30 region.

WTI looks to risk trends, data

Prices of the West Texas Intermediate have faded the earlier up tick to daily highs in the $62.30 region and are now meandering the lower bound of the range, shedding around a Dollar to session lows in the $61.30/20 band.

Concerns over the rising US crude oil output are forcing traders to ignore Friday’s drop in US oil rig count (-4 to 796 active oil rigs) and bypass today’s better tone in the risk-associated space.

In fact, according to the latest weekly report by the EIA, US oil production rose tp 10.27 million barrels during last week, surpassing Saudi Arabia’s and already targeting Russia’s production, the largest oil producer on the planet.

In addition, crude oil speculative net longs receded to the lowest level since January 9 in the week ended on March 6, as per the latest CFTC report.

Ahead in the week, the weekly reports on US crude oil supplies by the API (Tuesday) and the EIA (Wednesday) have now grown in importance and emerge as the main catalysts for the price action around WTI.

WTI significant levels

At the moment the barrel of WTI is down 1.46% at $61.27 and a break below $60.03 (low Mar.8) would target $59.64 (100-day sma) and finally $58.10 (2018 low Feb.9). On the other hand, the next hurdle aligns at $61.71 (10-day sma) followed by $63.31 (high Mar.6) and then $64.30 (high Feb.6).