WTI retreats from highs, back near $43.00

Crude oil prices have now returned to red figures, dragging the West Texas Intermediate to the $43.00 area per barrel.

WTI upside capped near $43.40

The barrel of WTI is now shedding some ground after yesterday’s test of highs near $43.40, once again backed by rumours of a potential agreement between oil producers to freeze the output at a meeting in late September.

However, traders remain sceptical in light of previous failed attempts to freeze oil production, somewhat capping the upside.

Ahead in the session, the API’s report on US crude stockpiles is due, followed by tomorrow’s report by the EIA and the US oil rig count by driller Baker Hughes on Friday.

WTI levels to consider

At the moment the barrel of WTI is losing 0.16% at $42.96 facing the next support at $39.26 (low Aug.2) ahead of $37.61 (low Apr.18) and finally $35.24 (low Apr.5). On the upside, a breakout of $43.39 (high Aug.8) would aim for $45.00 (100-day sma) and then $46.93 (high Jul.12).