WTI turns negative near $46.20, data, Fedspeak on sight

The recent upside in crude oil prices now seems to be taking a breather, with the barrel of West Texas Intermediate deflating from highs and testing the $46.20 area.

WTI fades the spike post-Saudi news

Prices for the WTI have gathered initial traction following Saudi proposal to reduce its oil production as long as Iran limits its own output to 3.6 million barrels/day, all ahead of the Algiers meeting due next week.

In the meantime, WTI remains well underpinned following significant drops in crude inventories as reported by the API and the EIA earlier in the week.

Ahead in the NA session, speeches by FOMC’s Harker, Lockhart and Mester are expected to shift the attention to the greenback, ahead of the report by Baker Hughes on US drilling activity during last week.

WTI levels to consider

At the moment the barrel of WTI is retreating 0.26% at $46.20 and a breakdown of $42.55 (low Sep.20) would open the door to $41.10 (low Aug.11) and finally $39.19 (low Aug.3). On the other hand, the initial hurdle aligns at $46.52 (high Sep.22) followed by $47.75 (high Sep.8) and then $48.75 (high Aug.19).