WTI tests $49.00 post-EIA

Prices for the barrel of West Texas Intermediate  reacted adversely following the EIA’s weekly report, navigating within the daily range in the $49.00 neighbourhood.

WTI offered after data

The barrel of WTI surrendered gains despite the EIA’s report showed US crude oil supplies decreased by 6.451 million barrels during the week ended on August 4, more than initially estimated.

Additional data saw gasoline inventories up by 3.424 million barrels (vs. a forecasted drop of nearly 1.5 million barrels) and weekly distillate stocks down by 1.729 million barrels. Furthermore, supplies at Cushing increased by 0.569 million barrels.

The barrel of the American reference for the sweet light crude oil is hence extending its consolidative theme so far this week, although another test/break above the critical $50.00 mark still stays elusive.

WTI levels to consider

At the moment the barrel of WTI is losing 0.16% at $49.09 and a break below $48.45 (23.6% Fibo of the June-July rally) would aim for $48.09 (21-day sma) and finally $47.23 (38.2% Fibo of the June-July rally). On the upside, the next hurdle emegres at $50.43 (high Aug.1) seconded by $52.00 (high May 25) and then $53.76 (high Apr.12).