WTI trades little weak to $63.50 level during today's early session. The energy benchmark has been on a back-foot off-late as increasing challenges to global supplies regain market attention after early-month geopolitical issues fueled the black gold to five-month highs. In its monthly drilling productivity report released on Monday, the US Energy Information Administration said that the US crude output from seven major shale formations may rise by about 80,000 barrels per day in May to a record 8.46 million bpd. News was also doing rounds on Monday that OPEC+ alliance may increase its output to counter the US after Russian Finance Minister Anton Siluanov was spotted during the weekend. Other than global manufacturing data and news developments, weekly crude oil stock from the American Petroleum Institute may also entertain the crude followers.
Crude oil prices are loosing ground to the $63.43 support level as they settling just below it. The momentum is still in a decline mode making the price more vulnerable to the downside especially that the next support level is relatively far. Today we will keep focusing on the downside and we will be looking for a settlement below the $62.75 support level before entering the oversold zone.
Support: 62.75 / 61.97
Resistance: 63.43/ 64.07