WTI bounces off lows, still below $50.00

Crude oil prices are extending the weekly drop today, with the barrel of West Texas Intermediate around $49.30 after bottoming out near the $49.00 handle.

WTI weaker ahead of EIA

Prices for the WTI keep the bearish note intact this week, slipping back below the critical $50.00 mark despite the renewed offered bias around the greenback.

Adding to WTI weakness, the API has reported US supplies has increased by nearly 5 million barrels during last week, almost fully offsetting last week’s draw of more than 5 million barrels.

In the meantime, price action around the West Texas Intermediate is likely to pivot on the volatile headlines from the upcoming OPEC meeting and the deal on an output freeze, Iraq’s reluctance to add to such a deal and Russia’s still unclear position on the matter.

Later in the NA session, the USD will be in the limelight as US Services PMI, New Home Sales, Goods Trade Balance and the weekly report on crude oil inventories by the EIA are all to be published.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.20% at $49.36 facing the next support at $49.16 (low Oct.9) followed by $47.23 (55-day sma) and finally $46.44 (100-day sma). On the other hand, a surpass of $51.93 (2016 high Oct.19) would open the door to $53.89 (high Jul.10 2015) and then $62.58 (high May 6 2015).