WTI off-highs, flirts with $ 66 ahead of US rigs data

• Bullish bias intact, eyes on $ 67 mark.
• Will the US drilling data help to extend the upside?

WTI (oil futures on NYMEX) continues its Asian side trend into Europe, as the bulls take a breather ahead of the US drilling activity and NFP report due later today.

The barrel of WTI is seen extending its rebound from weekly lows into a third day today, as the bulls continue to cheer the optimism over the compliance to the OPEC – Russia output cut deal, after the latest Reuters survey found that the adherence by the OPEC and non-OPEC producers rose to 138% from 137% seen in December.

Moreover, worries over rising US output levels appear to be eclipsed by the OPEC output cuts extension, adding to the bullish tone around the black gold. Further, a bigger-than-expected drop in the US gasoline stocks combined with strengthening Chinese domestic oil product demand also helps keep the sentiment buoyed.

Looking ahead, traders await the US rigs count numbers for fresh direction on the prices while the US jobs report will also have a significant impact on the USD-sensitive commodity. At the time of writing, WTI rises +0.33% to $ 66.02 while Brent gains +0.24% to $69.78.

Goldman Sachs sees Brent surging above $80 in 6 months - CNBC

WTI Technical Levels

The resistances are aligned at $66.30 (daily high) ahead of $66.66 (3-year tops) and $ 67 (psychological levels). On the downside, supports are located at $65.48/37 (10 & 5-DMA), $65.00 (natural support) and $64.69 (20-DMA).