WTI tumbles to lows near $47.40
Crude oil prices are extending the bearish note during the second half of the week, dragging the barrel of West Texas Intermediate to daily lows in the $47.40 area.
WTI weaker on supply glut concerns, OPEC
Prices for the WTI remain on the defensive so far today, retreating since Monday and down for the third consecutive week following April’s peak near $53.80 (April 12).
Supply glut concerns have re-emerged among traders as of late following the relentless increase in US oil production, while the US drilling activity remains everything but abated, as shown by the 15th straight increase in oil rig count measured by Baker Hughes.
Adding to the selling mood around WTI, Russia has announced earlier that it has still made no decision regarding an extension of the OPEC/non-OPEC output cut deal
Furthermore, prices for the black gold remain depressed following this week’s reports by the API and the EIA, which showed draws of 4.2 million barrels and 0.93 million barrels during the week ended on April 28, respectively.
WTI levels to consider
At the moment the barrel of WTI is retreating 0.84% at $47.42 and a breach of $47.35 (low May 2) would expose $47.01 (2017 low Mar.22) and then $44.82 (low Nov.29 2016). On the upside, the next barrier lines up at $48.23 (high May 3) seconded by $48.45 (78.6% Fibo of the March-April rally) and finally $49.24 (200-day sma).
