WTI extends the drop below $71.00

• Crude oil prices retreat further to the mid-$70.00s.
• Prices of WTI drop to fresh multi-day lows.
• US oil rig count next of relevance on Friday.

Prices of the barrel of the West Texas Intermediate are trading on the defensive for yet another day, dropping to multi-day lows in the $70.50 area.

WTI looks to data

Prices of the barrel of the American benchmark for the sweet light crude oil are navigating fresh multi-day lows in the $70.50 area today, losing ground for the third consecutive session in response to recent unexpected build in US crude oil supplies.

In fact, the WTI drops to the $70.50 region today after US crude oil stockpiles increased more than expected by almost 5.8 mbpd during last week, as reported by the EIA on Wednesday, while US oil production remains around all-time highs around 10.70 mbpd.

Adding to today’s WTI weakness, news cited the OPEC could announce an increment of its production as soon as the June meeting.

Looking ahead, driller Baker Hughes will report tomorrow on the weekly US oil rig count.

WTI significant levels

At the moment the barrel of WTI is losing 1.56% at $70.61 facing the next down barrier at $70.25 (21-day sma) followed by $67.65 (low May 8) and finally $66.86 (low May 1). On the flip side, a breakout of $71.40 (10-day sma) would aim for $72.80 (2018 high May 22) and then $73.00 (psychological level).