WTI off daily highs, back around $44.00

Crude oil prices are trading on the defensive today, with the West Texas Intermediate falling from session highs above the $44.00 mark per barrel to the current vicinity of $43.80.

WTI now looks to EIA

Prices for the black gold have recovered the smile after dropping to the $43.60 region on Tuesday in response to an unexpected build in US supplies as reported by the American Petroleum Institute.

In fact, the API’s report showed US crude oil supplies went up by 0.851 million barrels during the week ended on June 23 vs. expectations of a draw of more than 2 million barrels.

However, the WTI managed to regain traction during the Asian session although gains faltered around $44.20. Despite the ongoing correction, WTI so far keeps the rebound from last week’s multi-month lows near the $42.00 mark well and sound, looking to advance for the fifth session in a row.

Additionally, the persistent selling bias around the buck has been lending extra legs to the rebound while at the same time helping the risk-on sentiment to prevail in the global markets.

Later in the session, the more relevant weekly report on US inventories by the EIA is due ahead of US oil rig count by driller Baker Hughes on Friday.

WTI levels to consider

At the moment the barrel of WTI is down 0.68% at $43.94 facing the next support at $42.05 (2017 low Jun.21) followed by $41.10 (low Aug.11 2016) and finally $39.19 (low Aug.3 2016). On the upside, a break above $44.44 (high Jun.27) would aim for $45.06 (high Jun.19) and then $45.11 (20-day sma).