WTI shed $0.20 to trade at $67.90, while........>

OIL: WTI shed $0.20 to trade at $67.90, while Brent lost $0.40 to trade at

$74.20.

- Late on Friday the latest Baker Hughes rig count data showed that US drillers

added to the number of active rigs in the latest week (to sit at the highest

level since March 2015).

- However the simmering tensions in the Middle East (notably in the Yemen-Saudi

region) and questions over the future of the Iranian nuclear deal are limiting

losses.

- The rejection ahead of 2018 highs on Tuesday is a concern for WTI bulls when

combined with daily studies correcting from overbought levels and the proximity

of the Bollinger top. Bears look for a close below the April 25 low ($67.11) to

gain breathing room and hint at a correction back to $65.09-66.28 where the

21-DMA is found. Bulls need a close above the YtD high ($69.55) to reconfirm

focus on $71.11-73.25 where the medium term bull channel top is noted.