WTI is now trading near the $63 handle, while Brent is also down by 1.20% to $68.48 per barrel

We got some overnight data from the DOE and it showed production rose a little over the week although inventories reflected a bigger drawdown than expected. But I don’t think that’s really playing too much into the recent drop in oil in the last hour.

WTI falls to near the $63 handle, where there is support from last week’s low at $63.06. WTI is now trading at $63.13, just bouncing off that a little.

Recent talks (see here and here) have been suggesting the market is growing a little more cautious about the rise in oil prices – and that could spook investors a bit.

There’s a couple of risk events on the day later as the IEA is going to release their monthly oil report/outlook at 0900 GMT and we’ll have Baker Hughes oil rig count in the US session at 1800 GMT. Some real money being taken off the table ahead of it maybe? Yesterday, OPEC released its monthly report and they estimated that non-OPEC supply will increase by 160K barrels to 1.15 million barrels per day.

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