WTI struggling to extend gains above $48

After starting the new week under selling pressure, West Texas Intermediate was able to find support around the $48 region. However, the crude oil is still struggling to make a convincing correction amid persistently increasing production in the U.S.

Rig Count

According to the data released by Baker Hughes on Friday, the number of active U.S.rigs drilling for oil increased by 8, bringing the total number up tp 617 rigs this week. The total active U.S. rig count, which includes oil and natural-gas rigs, also rose by 12 to 768.

Russia's top oil major Rosneft warned that a recovery in U.S. oil output might deter OPEC and non-OPEC producers from extending production cuts beyond June and might lead to a new price war, according to a report by Reuters.

Technical levels for WTI

At the moment the barrel of WTI is losing 0.12% at $48.44, and a breach of $47.90 (daily low) would aim for $47.40 (Nov. 23 low) and $47 (psychological level). On the upside, resistances are lined up at $50.11 (Mar. 10 high), followed by $52 (psychological level) and  $54.23 (Feb.28 high).