WTI reverts the down move, back around $56.00

• Prices for WTI gyrate around $56.00.
• Support found near $55.80.
• Focus now on US oil rig count (Friday).

Prices of the barrel of the West Texas Intermediate have regained the $56.00 handle on Thursday after briefly testing lows in the $55.80 region during early trade.

WTI down for the second week in a row

Prices for the WTI are now alternating gains with losses and are on their way to close the second consecutive week in the red territory after being rejected from fresh 2017 tops above the $59.00 mark just a couple of weeks ago.

WTI is suffering another increase in US oil production, as noted by the EIA in its latest report on Wednesday. In addition, gasoline stockpiles rose more than initially expected according to the same report, eclipsing at the same time the larger-than-forecasted draw in crude oil supplies.

It is worth recalling that the OPEC agreed to extend the output cut deal for an extra 9 months to the end of 2018 at its meeting on November 30, broadly in line with market expectations. However, the persistent raise in US crude oil production continues to challenge the cartel’s resolve and keeps at the same time traders’ sentiment depressed.

WTI significant levels

At the moment the barrel of WTI is up 0.13% at $56.03 facing the next support at $55.83 (low Dec.7) seconded by $54.81 (low Nov.14) and finally $54.16 (55-day sma). On the upside, a break above $57.04 (21-day sma) would aim for $58.88 (high Dec.1) and then $59.05 (2017 high Nov.24).