WTI Reduces Losses Post-EIA, Focus on Fedspeak
Prices for the barrel of West Texas Intermediate have trimmed earlier losses following the EIA report, navigating the $48.70 area after testing the $48.00 region.
WTI weaker on OPEC, EIA
The barrel of WTI managed to bounce off lows in the $48.00 neighbourhood despite crude oil inventories have decreased less than expected by nearly 1.4 million barrels during last week vs. a drop of almost 2.5 million barrels initially estimated, according to the EIA’s report.
Further data saw gasoline inventories dropping by nearly 1.5 million barrels, while inventories at Cushing fell by more than 0.700 million barrels.
Prices for the black gold remain on the defensive today after the OPEC meeting yielded no agreement over a production freeze, while uncertainties remain alive regarding an output ceiling.
WTI levels to consider
At the moment the barrel of WTI is losing 0.80% at $48.61 with the initial support located at $46.73 (low May 19) followed by $43.59 (55-day sma) and then $43.03 (low May 10). On the flip side, an advance above $50.21 (2016 high May 26) would open the door to $50.92 (high Oct.9 2015) and finally $53.85 (high Jul.10 2015).