WTI drops more than 3.5%, hits lowest in a week

• Crude oil prices tumble amid an increase in US rigs and risk aversion. 
• WTI barrel breaks under $52.00. 

WTI (oil futures on NYMEX) are falling sharply on Monday, losing almost 4%, having the worst performance since the beginning of the year. The increase in rigs, a stronger US dollar and the lack of advance on US-China trade talks favored the downside in crude oil prices on Monday. 

The move lower represents a continuation of the correction from the highest level in almost two months. From December  23 to January 21 gained more than 20%. The rally found resistance at $54.50 and retreat. Last week, the move lower found support at $52.00 but today, broke below and extended losses. 

As of writing trades at 1-week lows, at $51.75 still under pressure. In Wall Street, the Dow Jones is down 1.35% and the Nasdaq 1.4%. In Europe, major stock indexes are about to end lower with losses around 0.80% on average. The US Dollar Index (DXY) is flat around 95.70, but the greenback is higher versus commodity and emerging market currencies. 
 

WTI Levels