Crude oil finding buyers in thin volume, trying to pare back recent losses

• Crude stepping up cautiously in Asia markets.
• Risk aversion, US supply glut dragging oil down.

Crude oil climbed marginally to begin the week's trading, adding fifty cents a barrel to WTI crude, and is now trading flat ahead of European markets, near 59.80/barrel.

Crude oil took a header recently, closing in the red for five of the last seven trading days, as risk aversion sees equities off their record highs, bond yields spiking, and commodities suffering losses on their face value as traders pull record amounts of cash out of broad markets and stuffing it into safe havens. Recent economic growth in major economies has stoked fears of inflation bringing along rising interest rates as central banks prepare to tighten their belts for the first time in almost a decade, and begin tapering off their respective easing programs that have kept equity markets flush with cash in low-growth conditions.

Adding to crude oil's woes, the US has been pumping record amounts of the black liquid, clearing the decades-long oil production records held within the country since the 1970s, much to the chagrin of OPEC, which has worked hard in recent years trying to keep supply restrained in order to hold prices for crude at profitable levels.

Crude Technicals

With the recent downswing in crude prices, WTI faces intraday support at 58.80, with a clear path to the next support level at 55.90 should 58.80 fail to hold; short-term resistance is priced in at 60.20 and 61.25 just above. Brent crude will be looking for the floor to hold at 62.40, while bullish moves will be capped by resistance at 64.10 and 65.05.