WTI comes down to test $45.00 on EIA

Crude oil prices have accelerated their correction lower today, currently sending the West Texas Intermediate to fresh lows in the $45.00 neighbourhood per barrel.

WTI weaker on EIA’s report, focus on FOMC

Prices for the barrel of WTI has dropped further after the EIA reported a massive over 14 million barrels increase in US crude oil supplies during last week, badly missing expectations. Today’s buil in supplies is the biggest in 34 years.

Further data saw Gasoline inventories decreasing by more than 2.2 million barrels, while supplies in Cushing have risen marginally.

The DoE report adds to yesterday’s massive build in stockpiles reported by the API (up more than 9 million barrels), the largest build since March.

Later in the NA session, the FOMC meeting is expected to deliver a hawkish tone, which could bring in some respite to the beleaguered greenback.

WTI levels to consider

At the moment the barrel of WTI is losing 3.02% at $45.26 and a breakdown of $44.19 (low Sep.27) would expose $43.50 (200-day sma) and then $46.44 (100-day sma) and finally $42.55 (low Sep.20). On the other hand, the next resistance aligns at $47.33 (55-day sma) followed by $49.66 (20-day sma) and finally $51.93 (2016 high Oct.19).