WTI trims gains to $61.50 on USD-buying

• Prices for the WTI dropped to fresh lows in the mid-$62.00s.
• Stronger greenback behind oil’s correction lower this week.
• Focus remains on Powell’s testimony and key US ISM.

Prices of the West Texas Intermediate are dropping further south of the $62.00 mark per barrel on Thursday, recording at the same time fresh 4-day lows.

WTI looks to Powell, data

Prices of the barrel of the American benchmark for the sweet light crude oil are extending the weekly leg lower today, meandering the area of multi-day lows after hitting tops above the $64.00 mark in the first half of the week.

The stronger sentiment surrounding the buck is hurting WTI and the rest of the USD-denominated assets, while the recent build in crude oil stockpiles and the uptick in US crude oil production – as per the EIA’s report on Wednesday – are also having their say in the decline.

Later in the session, the bulk of the attention will be on Powell’s testimony before the Senate Banking Committee and January’s key ISM manufacturing. On Friday, driller Baker Hughes will report on the weekly US oil rig count.

WTI significant levels

At the moment the barrel of WTI is losing 0.02% at $61.50 and a break below $60.88 (low Feb.22) would aim for $60.13 (23.6% Fibo of $66.72-$58) and finally $58.10 (2018 low Feb.9). On the flip side, the next up barrier emerges at $63.43 (61.8% Fibo of $66.72-$58.10) seconded by $64.30 (high Feb.26) and finally $66.35 (high Feb.2).