WTI plummets to $64.00 ahead of US ISM

• Prices of the barrel of WTI tumbles to lows near $64.00.
• The barrel of WTI reverses the earlier uptick to $65.40.
• US ISM Manufacturing next on tap in the NA session.

Prices of the barrel of the American benchmark for the sweet light crude oil has abruptly dropped to the $64.00 neighbourhood, recording at the same time fresh 2-day lows.

WTI looks to US data

Without any apparent catalyst, prices of the barrel of the West Texas Intermediate fell to the $64.00 area after US desks opening the session on Monday, coming down from tops near $65.50 recorded during early trade.

The rally in crude oil prices met strong resistance in last week’s tops in the $66.40 area, sparking the ongoing leg lower to the boundaries of the $64.00 milestone, all amidst the pick up in the demand for the buck and the presence off sellers in the risk-associated universe.

WTI thus erodes part of the recent strong gains following the combination of rising optimism on the likeliness of another extension of the OPEC/non-OPEC output cut deal into 2019 (which according to market rumours could be between 3 and 6 months) and geopolitical concerns.

News from the speculative community notes net longs rose to 7-week tops on the week to March 27, according to the latest CFTC report.

In the data space, the usual reports on US stockpiles by the API and the EIA are due on Tuesday and Wednesday, respectively.

WTI significant levels

At the moment the barrel of WTI is losing 1.08% at $64.16 facing immediate contention at $63.66 (low Mar.28) followed by $62.95 (21-day sma) and finally $60.03 (low Mar.8). On the other hand, a breakout of $66.38 (high Mar.26) would open the door to $66.72 (2018 high Jan.25) and then $77.95 (high Nov.21 2014).