WTI up smalls around $49.40

Crude oil prices are trading within a narrow range at the beginning of the week, with the barrel of West Texas Intermediate testing the $49.40 region at the time of writing.

WTI choppy, supported near $49.00

After bottoming out near the critical support at the $49.00 mark on Friday, prices of the barrel of the American reference for the sweet light crude oil are trading in a choppy fashion on Monday, although they are so far managing to keep the trade above recent lows.

In the meantime, WTI stays wary as traders continue to gauge the recent pass of the hurricane Nate and its consequences for the oil industry, particularly in refineries in the Gulf of Mexico.

On the brighter side, OPEC’s M.Barkindo commented on Sunday that the cartel seems to be assessing a potential extension of the output cut deal beyond March 2018.

Further out, driller Baker Hughes reported late on Friday that US active oil rigs went down by 2 to 748 during the week ended on September 29.

On the positioning front, crude oil speculative net longs decreased to 2-week lows in the week to October 3, according to the latest CFTC report.

WTI significant levels

At the moment the barrel of WTI is up 0.30% at $49.44 and a break above $50.30 (21-day sma) would aim for $50.78 (10-day sma) and finally $52.86 (high Sep.28). On the other hand, the next support lines up at $49.10 (low Oct.6) followed by $49.02 (55-day sma) and then $48.36 (61.8% Fibo of $45.58-$52.86).