WTI extends the sell-off to $48.00

The sell-off in crude oil prices stays intact at the beginning of the week, now dragging the West Texas Intermediate to the vicinity of the $48.00 mark per barrel.

WTI weaker post-data

Prices for the barrel of the American sweet light crude oil remain on the defensive today, shedding ground for the sixth session in a row and threatening to challenge the critical support at the $48.00 mark.

Crude oil prices are retreating further today after driller Baker Hughes reported on Friday that US oil rig count increased by 8 to 617, adding to the prospects of rising US oil production and exacerbating concerns over a supply glut.

Baker Hughes reported its eighth consecutive increase in oil rig count, adding to rising US supplies as informed by the API and the EIA and all plotting against any attempt of recovery in crude prices.

In the positioning space, crude oil speculative net longs have receded to 3-week lows during the week ended on March 7 as per the latest CFTC report, adding to the recent bearish note.

WTI levels to consider

At the moment the barrel of WTI is losing 0.25% at $48.37 facing the next support at $44.82 (low Nov.29) followed by $42.55 (low Sep.20) and then $42.20 (low Nov.14). On the other hand, a breakout of $48.73 (200-day sma) would expose $50.11 (high Mar.10) and finally $50.93 (100-day sma).