- WTI remains under bearish pressure after breaking below $ 63.
- Broad USD strength is weighing on crude prices on Friday.
- OPEC + is reportedly looking to increase production starting in April.
The barrel of West Texas Intermediate (WTI) It touched its highest level in more than a year at $ 63.80 on Thursday, but made a deep correction on Friday. At time of writing, WTI was down 1.8% on the day at $ 62.30.
WTI looks to make impressive monthly earnings in February
Earlier in the week, the US Energy Information Administration (EIA) reported an astonishing 1.2 million barrel build in US crude oil stocks and limited earnings from WTI. In addition, the widespread strength of the USD in the second half of the week amid rising Treasury yields is weighing on USD-denominated oil prices.
Meanwhile, Reuters reported on Wednesday that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC +, may choose not to increase oil production by 500,000 barrels per day from April. Sources familiar with the matter told Reuters that Saudi Arabia could also start implementing voluntary supply cuts.
Despite the recent pullback, WTI continues to climb more than 5% on a weekly basis. Additionally, WTI remains on track to close the fourth consecutive month in 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 revised for fresh momentum.
Technical levels
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