WTI plummets to 2-month lows in sub-$55.00 levels

• Prices of the WTI remains on the defensive below $55.00.
• Oversupply, growth concerns weigh on sentiment.
• US oil rig count coming up next.

Prices of the West Texas Intermediate remain well entrenched into the negative ground at the end of the week, navigating fresh 2020 lows in the $54.70 region.

WTI weaker ahead of data

The barrel of WTI has been losing ground since Monday, shedding more than 8% since then and over 17% since 2020 peaks near the $66.00 mark recorded earlier in the year.

Crude oil prices are down for the third week in a row on Friday, always in response to oversupply fears and concerns regarding the global economic growth. These concerns have been particularly intensified after the outbreak of the coronavirus in China, clouding prospects for the demand of the commodity in the second world importer.

Collaborating with the downside, the EIA reported on Thursday a 405K barrels drop during the past week, coming in short of previous estimates. On Wednesday, the API said US oil supplies went up by 1.6M barrels during last week.

Later in the day, driller Baker Hughes will publish its weekly report on US oil rig count during last week (+14 prev.).

WTI significant levels

At the moment the barrel of WTI is retreating 2.18% at $54.48 and a break below $53.66 (low Oct.31 2019) would aim for $51.06 (monthly low Oct.3 2019) and finally $50.47 (monthly low Aug.7 2019). On the flip side, the next resistance aligns at $57.47 (200-day SMA) seconded by $58.75 (55-day SMA) and finally $59.73 (weekly high Jan.20).