WTI hits fresh weekly lows ahead of API report

Oil futures on NYMEX are seen extending declines into a third day today, with markets anticipating further losses amid renewed supply glut worries, in wake of rising US production levels.

Currently WTI drops -0.51% to hover near fresh one-week lows of $ 52.24, with doors opening for a test of 100-DMA support located at $ 50.17. Oil prices remain under pressure as analysts believe that the black gold is due a correction as the markets have already priced-in the OPEC output curbs.

While growing US inventories as well production levels also add to the investors’ concerns, weighing negatively on the sentiment around oil. Goldman Sachs estimates that year-on-year US oil "production will rise by 290,000 bpd in 2017" if a backlog on rigs that are still to become operational is accounted for, Reuters reports.

All eyes now remain on the weekly crude stockpiles report from the API due to be published later in the American morning.

WTI technical levels

A break above $ 53 could yield a test of $ 53.46 (previous high). While a breach of support at $ 52 (round figure) would expose the 100-DMA support of $ 50.17.