WTI extends downward correction toward $62 ahead of US rigs data
- WTI remains under bearish pressure after breaking below $63.
- Broad USD strength is weighing on crude oil prices on Friday.
- OPEC+ is reportedly is looking to ramp up production from April.
The barrel of West Texas Intermediate (WTI) touched its highest level in more than a year at $63.80 on Thursday but staged a deep correction on Friday. As of writing, WTI was down 1.8% on a daily basis at $62.30.
WTI looks to post impressive monthly gains in February
Earlier in the week, the US Energy Information Administration (EIA) reported a surprise 1.2 million barrels build in US crude oil stocks and limited WTI's gains. Additionally, the broad-based USD strength in the second half of the week amid surging Treasury bond yields is weighing on USD-denominated oil prices.
Meanwhile, Reuters reported on Wednesday that the Organization of the Petroleum Exporting Countries (OPEC) and allies, a group known as OPEC+, could opt-out to increase the oil production by 500K barrels per day from April. Sources familiar with the matter told Reuters that Saudi Arabia could start rolling out the voluntarily supply reductions as well.
Despite the recent pullback, WTI is still up more than 5% on a weekly basis. Furthermore, WTI remains on track to close the fourth straight month in the positive territory and is gaining nearly 20% in February.
Later in the day, Baker Hughes Energy Services' weekly oil rig count data for the US will be looked upon for fresh impetus.
Technical levels to watch for