WTI corrects higher to $ 46, oversupply worries cap gains

FXStreet (Mumbai) - WTI oil on NYMEX rebounded on Monday, after booking heavy losses on Friday, as broader recovery in the commodity space and a weaker USD supports the oil recovery.

WTI: oversupply worries persists

Currently, WTI trades 1.60% higher at 45.73, receding from 45.93 highs. US oil rallied on Monday as the investors sentiment was slightly boosted by Friday’s fall in rig count news.

The number of US rig counts fell by 8 to 644 in the week to September 18, declining for the third straight week, according to Friday's report by oilfield services company Baker Hughes.

Moreover, markets resorted to profit-taking on their oil shorts after the steep drop seen on Friday while digesting the latest report from Saudi Arabia.

Saudi Arabia's crude stockpiles climbed to record levels in July, the data showed on Sunday, amid the nation's efforts to boost production to keep its market share.

Meanwhile, any recovery in the oil prices appear short-lived as the persisting worries over global supply glut and slowing demand continue to weigh on the oil markets.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 47.03 levels above which gains could be extended to 47.71 levels. Meanwhile, support is seen 44.82 levels from here losses could be extended to 43.92 levels.