WTI looks to settle below $60 as selloff on easing geopolitical tensions continues

• De-escalation of US-Iran conflict continues to weigh on crude oil prices.
• EIA's weekly report shows surprise build in US crude oil stocks.
• Coming up on Friday: Baker Hughes Oil Rig Count.

Crude oil prices continued to push lower after suffering heavy losses on Wednesday as easing worries over a protracted US-Iran conflict and its potential negative impact on oil supply caused investors to book their profits following the sharp rally witnessed during the first half of the week.

The barrel of West Texas Intermediate (WTI), which touched its highest level since April at $65.60 on Wednesday, closed with a daily loss of more than 4% and was last seen trading at $59.55, erasing 0.7% on a daily basis.

Focus shifts to US crude oil stocks

In the meantime, the weekly report published by the US Energy Information Administration (EIA) on Wednesday revealed that crude oil stocks in the US increased by 1.164 million barrels in the week ending January 3rd to further weigh on crude oil prices. On Friday, Baker Hughes' Oil Rig Count will be the last relevant data of the week for the WTI.

Technical levels to watch for