WTI Back Near $44.00 on EIA
The barrel of West Texas Intermediate has abandoned the area of daily highs near the $45.00 mark after the EIA’s weekly report.
WTI trims gains post-EIA
Prices for the American benchmark for the light sweet oil met a wave of selling pressure after crude oil inventories have increased by nearly 2.8 million barrels during last week, according to the latest report by the EIA.
Further data showed inventories at Cushing increasing by 0.243 million barrels and gasoline inventories up by 0.536 million barrels vs. a forecasted drop of 0.144 million barrels.
After dropping to the mid-$43.00s in early trade, the barrel of WTI has been gathering traction following news that wildfires in Canada were hitting oil sands production, although the release of the EIA’s report prompted sellers to step in and cash up initial gains.
WTI levels to consider
At the moment the barrel of WTI is up 1.34% at 44.33 with the initial hurdle at $46.78 (2016 high Apr.29) followed by $48.36 (high Nov.3 2015). On the other hand, a breach of $42.52 (20-day sma) would target $41.91 (76.4% Fibo of $26.05-$46.78) en route to $39.75 (200-day sma).