WTI Drops to Lows Near $50.70
After hitting fresh 2016 highs in the $51.70 area per barrel, the West Texas Intermediate is now grinding lower towards the $50.75/70 band.
WTI corrects lower on USD buying
The greenback is trading on a firmer fashion today, prompting USD-denominated assets to recede from recent highs and opening the door for a potential deeper retracement.
The barrel of WTI managed to advance through the $51.00 mark for the first time since July 2015, backed by a persistent selling mood around the dollar, output disruptions in Nigeria and decreasing build up in crude inventories following this week’s reports from the API and the EIA.
WTI levels to consider
At the moment the barrel of WTI is retreating 0.88% at $50.78 facing the next support at $50.21 (previous 2016 high May 26) ahead of $49.18 (20-day sma) and then $46.73 (low May 19). On the other hand, a break above $51.67 (2016 high Jun.8) would open the door to $53.85 (high Jul.10 2015) and finally $61.82 (high Jun.10 2015).