WTI Sinks to Lows Near $46.80
The barrel of West Texas Intermediate is trading in fresh 3-day lows in sub-$47.00 levels, prolonging its leg lower after recent 2016 highs near $49.00.
WTI lower on USD bids
Crude oil prices are retreating for the second consecutive session as yesterday’s FOMC minutes left the door open for a rate hike by the Federal Reserve at its meeting next month if data remain supportive, all adding extra legs to the dollar.
Collaborating with the downside, the EIA’s weekly report showed that crude oil inventories have unexpectedly increased by more than 1.3 million barrels during last week, prompting concerns over the supply glut to re-emerge.
WTI levels to consider
At the moment the barrel of WTI is down 2.59% at $46.94 with the initial support at $45.35 (20-day sma) ahead of $42.50 (low Apr.26) and then $41.26 (55-day sma). On the flip side, a surpass of $48.95 (high May 18) would aim for $49.33 (high Aug.31 2015) and then $50.92 (high Oct.9 2015).