WTI extends the retreat towards $ 61.50

• Rising US output, bearish CFTC data push WTI lower.
• Downside opening up towards 100-DMA at $ 60.75?

WTI (oil futures on NYMEX) experienced good two-way businesses at the start of a brand new week, initially having built on Friday’s rebound above the $ 62 mark before meeting fresh supply on persistent worries over soaring US oil output levels.   

The gains induced by the drop in the US rigs count data failed were outweighed by rising US output concerns and bearish CFTC COT report. According to the CFTC data, money managers trimmed 15,416 long positions in WTI last week while creating 4,386 new shorts.

Oil prices rallied on Friday after the US dollar was dumped across the board, following the release of mixed US employment data, which showed that the headline NFP numbers outperformed while the wage growth figures disappointed.

WTI Technicals

At $ 61.67, the supports are located at $ 61.43 (5-DMA), $ 61 (round number) and $ 60.75 (100-DMA). On the flipside, the resistances are aligned at $ 62.11/14 (20-DMA, daily pivot), $ 62.50 (psychological levels) and $ 62.87 (50-DMA).