WTI finds support near $50.00 ahead of US data

Crude oil prices are struggling to gather any traction on Monday, although they manage to keep the trade around the critical $50.00 mark for the time being.

WTI sidelined ahead of US data

The barrel of West Texas Intermediate has abandoned the area of last week’s tops above the $51.00 mark, although it seem to have found decent support in the $50.00 neighbourhood.

Rumours regarding the recent OPEC deal to freeze the oil output and the potential outcome of the cartel’s meeting in Vienna next month continue to play with traders’ sentiment in the near term, while further gains appear somewhat capped by the ongoing USD rally.

It is worth noting that according to the latest CFTC report, speculative net longs in crude oil have reached levels last seen in July 2014 above 413K contracts during the week ended on October 11, where the WTI was trading above the $100 mark per barrel.

Data wise in the US docket, the NY Empire State manufacturing gauge is due later in the NA session followed by September’s Industrial Production and Capacity Utilization and the speech by FOMC’s VP S.Fischer on ‘Low Interests Rates’ at the Economic Club of New York Luncheon.

WTI levels to consider

At the moment the barrel of WTI is losing 0.22% at $50.23 facing the next support at $49.15 (low Oct.10) followed by $48.54 (20-day sma) and finally $46.36 (55-day sma). On the flip side, a surpass of $51.14 (high Sep.14) would expose $51.67 (2016 high Jun.6) and then $53.89 (high Jul.10).