WTI drops to lows near $45.80 on EIA

Crude oil prices are now accelerating the daily downside, pushing the barrel of West Texas Intermediate to the $45.80 region, or daily lows.

WTI faded the spike above $46.00

Prices of the barrel of the American benchmark for the sweet light crude oil quickly faded the bullish attempt to the area above the $46.00 handle after the EIA reported another draw of US crude oil supplies, this time by 5.392 million barrels during the week ended on August 25.

Additional data from the EIA showed gasoline inventories up by a marginal 0.035 million barrels and weekly distillate stocks increasing by 0.748 million barrels. Furthermore, supplies at Cushing rose by 0.689 million barrels.

In the meantime, prices for the WTI are down for the third consecutive session, all within a broader 5-week negative streak, with traders’ attention on the Hurricane Harvey and its impact on the US oil industry, particularly in Texas.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.25% at $45.87 facing the next support at $45.40 (low Jul.24) seconded by $45.25 (61.8% Fibo of June-August up move) and finally $44.03 (76.4% Fibo of June-August up move). On the flip side, a break above $46.67 (55-day sma) would open the door to $47.32 (10-day sma) and finally $47.59 (100-day sma).