WTI slumps to $48.50

FXStreet (Edinburgh) - The barrel of the American benchmark for the light crude oil is dropping to session lows in the $48.50 area, losing almost 3%.

WTI hurt by the dollar, EIA

The strength in the US dollar is taking a toll in the crude oil prices today, with the barrel of WTI hitting multi-day lows and coming down from recent peaks near $52.40 posted last week.

Collaborating with the downside, the EIA revised lower its forecasts for crude oil prices, now at $52.15 for the present year (from $55.02) and $70.00 in 2016 (from $71.00). The government agency will publish its weekly report on crude oil inventories tomorrow, expected at 4.5 million/barrels in the week ended on march 6th.

WTI key levels

The barrel of WTI is now retreating 2.89% at $48.56 and a drop below $47.80 (low Feb.26) would aim for $47.46 (low Feb.2) and finally $45.07 (low Jan.30). On the upside, the initial resistance lines up at $50.99 (55-d MA) followed by $52.72 (high Feb.19) and then $54.32 (high Feb.17).

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