West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, slips on Monday’s opening, extending its weaker sentiment from Friday.
The (WTI) extended its losses from Friday as the greenback strengthened, while the U.S. rig count rose, even though almost a quarter of U.S. Gulf of Mexico output remained shut after Hurricanes Ida and Nicholas.
A rising U.S. rig count also weighed on (WTI) oil. The energy firm Baker Hughes closely followed report said on Friday that the oil and gas rig count rose by nine to 512 in the week to Sep. 17, its highest since April 2020 and double the level from the same time in 2020.
Assessing the technical layout, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has buckled and retreated from the overbought zone and just confirmed a negative signal, while the Moving Average Convergence Divergence (MACD) supports a positive signal.
Viewing a New York close beneath $70.45-55 would reinstate the bearish sentiment to $67.40-80.
Until we witness the break, a neutral view holds.
No assessment is seen towards the topside.