WTI upside still capped near $50.00

Crude oil prices are now exchanging gains with losses, taking the barrel of West Texas Intermediate back to the $49.60 area.

WTI now looks to oil rig count

Prices for the barrel of WTI are now navigating the mid/upper-$49.00s as optimism seems to have returned to investors in light of the positive prospects following the persistent decline of US crude oil supplies, as shown by weekly reports by the EIA.

In addition, next week’s meeting in Abu Dhabi will see some OPEC and non-OPEC producers exchanging views on ideas over how to improve the current compliance with the OPEC output cut deal, keeping the upbeat tone unchanged among traders.

Looking ahead, US non farm payrolls due tomorrow will be the salient event this week, although crude oil traders will also look to the weekly report on US drilling activity by Baker Hughes later on Friday.

WTI levels to consider

At the moment the barrel of WTI is up 0.06% at $49.62 facing the next resistance at $50.43 (high Aug.1) seconded by $52.00 (high May 25) and then $53.76 (high Apr.12). On the flip side, a break below $48.37 (low Aug.1) would aim for $47.95 (100-day sma) and finally $47.23 (38.2% Fibo of the June-July rally).