WTI weaker, challenges $37.00

The barrel of West Texas Intermediate is eroding part of yesterday’s advance, now coming down to session lows in the $37.00 neighbourhood.

WTI lower on USD-buying

Prices for the sweet American crude oil are snapping a 2-day positive streak today, leaving behind the area of recent highs above the $38.00 handle after the EIA reported inventories have decreased by 4.9 million barrels during last week, more than initially estimated.

A re-emergence of the demand for the greenback has been weighing on WTI prices so far today, as well as an increasing uncertainty regarding a potential coordinated output freeze at the meeting in Doha on April 17.

WTI levels to consider

At the moment the barrel of WTI is down 2.07% at $36.99 facing the immediate support at $35.09 (100-day sma) ahead of $34.24 (55-day sma) and then $32.10 (38.2% Fibo of $26.05-$41.90). On the other hand, a break above $38.29 (high Apr.7) would allow a test of $40.12 (high Mar.28) and finally $40.51 (200-day sma).