WTI extends correction as dollar comes off and US stocks rise

• WTI catches a bounce.
• WTI runs with US stocks.

WTI is piercing the 200-hr SMA in an extension of the recovery from the psychological $60.00bbls where oil has found demand on the back of reports of supply disruptions in Libya over the weekend.

WTI was trading at a low of $60.01 closing last week, but reports over the weekend that Libyan production fell by around 380,000 barrels a day helped the black gold to recover some of last week’s losses. Elsewhere, the US dollar has been trading in a narrower range of between 89.833 - 90.216 and is currently under pressure below the 90 level while US stocks catch a bounce, aiding a bid in WTI as well. 

IEA latest

The International Energy Agency on Monday revised U.S. oil output growth up. The agency said the US would be producing a total of nearly 17 million barrels per day in 2023, up from 13.2 million last year, eating into OPEC's market share and moving closer to self-sufficiency.

WTI  levels

On the wide, $60.20 (low Feb.22) guards $60.13 (23.6% Fibo of $66.72-$58) and finally $58.10 (2018 low Feb.9). On the flp side, $62.22 (10-day sma) was broken and eyes now look to $63.43 (61.8% Fibo of $66.72-$58.10) and then $64.30 (high Feb.26).