Oil seeking buyers, lifting carefully above $62.00 after last week's pummeling
- Crude lifting in the early sessions after tumbling last week on trade wars.
- US oversupply continues to burst oil supply at the seams, putting downward pressure on prices.
WTI Crude is lifting cautiously in Monday' trading, opening the new week at 62.00/barrel and trading into 62.30 on low volatility.
Crude fell around 2 percent last week as geopolitical tension between the US and China continue to ramp up, and Beijing has yet to respond to the latest round of tariffs being suggested by US President Trump late last week.
Further adding to oil prices' woes is the US oversupply, which promises to worsen after the number of active oil rigs in the US reached 808, the highest number since early 2015. Increasing output from both the US and Russia threatens to undermine all of the hard work that OPEC has put into constraining oil prices.
monday's action could see some further price lifts from Middle East tensions following the reports of air strikes taking place at a Syrian airbase, which were initially blamed on the US, but both the White House and the Pentagon have denied any involvement.
WTI Levels to watch
WTI has failed to capture the 65.00 key handle twice this year, and the commodity is hanging in the balance, and as FXStreet's own Flavio Tosti noted, "the bears are testing last week’s open and the $62.30 support. The short-term momentum remains titled to the downside. The bulls were unable to lift the market above the $63.72 resistance and the market is now testing the lows seen on last Wednesday and the $62.30 support which acts as immediate support. The next support is seen at $61.09 previous swing low. The market is sliding down in a bear channel. Resistance is seen at $62.81 swing low and the $63.72 supply level. If the bears manage to break $62.30 support, the level will revert to resistance. Looking down, the next significant level is seen at $61.09 previous swing and the $60 figure. The short-term momentum remains bearish as long as the bears keep the market below $63.72."