WTI oil returns to $63/barrel as US production continues to build

• Crude sheds almost a dollar/barrel as oversupply pushes prices lower.
• OPEC cuts are having little to no effect as the US continues to ramp up production numbers despite the infrastructure bursting at the seams.

WTI crude fell in the overnight session, tumbling back into the familiar 63.00/barrel figure as oversupply continues to grip energy traders.

Production estimates are showing that Texas oil output has hit an all-time high, reaching 3.08 million barrels per day, compared to the total US production volume of 10.4 million bpd. Production rates are crushing demand and infrastructure, as supply lines are struggling to keep up with the amount of crude oil that the US is producing.

WTI crude tumbled in the early week from the 65.25 mark into the 62.00 handle before recovering to 64.10, but the commodity is dipping again into 63.00 as traders face the grim truth of the US over-production gripping global oil markets.

WTI Levels to watch

With oil back into the 63.00 handle, barriers are set at the last swing low/high, at 62.20 and 63.90 respectively, while a bullish break will see resistance from the month's high near 65.20, while a bearish continuation will see support from March's open at 61.40.