Crude oil prices are trading in the negative ground on Wednesday, currently
hovering over the $47.00 area per barrel.
WTI weaker on supply
concerns
Prices for the West
Texas Intermediate are surrendering part of yesterday’s strong
gains, testing the key support at $47.00 the figure as market participants
remain concerned over the ongoing supply glut.
Collaborating with the
downbeat sentiment, a confidential OPEC report argued that demand for the
cartel’s crude would remain under pressure in the upcoming years, potentially
until 2019. It is worth recalling that the next meeting of OPEC’s oil ministers
is due on December 4th.
Furher news saw crude oil inventories increasing
by 2.8 million barrels in the week ended on October 23rd.
WTI
levels to watch
At the moment the barrel of West Texas
Intermediate is losing 1.77% at $47.06 with the next support at $41.78 (low
Aug.28) ahead of $40.85 (23.6% Fibo of $37.75-$50.92) and finally $37.75 (2015
low Aug.24). On the other hand, a surpass of $48.36 (high Nov.3) would aim for
$49.33 (high Aug.31) and then $50.76 (200-day sma).
