WTI picking up pace, testing $45.00 ahead of API

Crude oil prices are extending the weekly upside on Tuesday, currently sending the barrel of West Texas Intermediate back to the vicinity of the $45.00 mark.

WTI focus on US elections, API

After bottoming out in fresh 2-month lows in the mid-$43.00s during last week, the barrel of WTI has triggered a decent correction higher along with a pick up in the risk-on sentiment, particularly after the FBI has cleared Democratic candidate H.Clinton over her emails.

Prices for the black gold keep trading on a firm fashion during the first half of the week, as market participants remain positioned for a potential win by H.Clinton today. Recall that most election polls see Clinton up by 2-4 pts.

Other than the US elections, oil traders will also remain vigilant on the API’s weekly report on crude oil supplies following last week’s large increase in stockpiles.

Regarding positioning, WTI speculative net longs have retreated to 5-week lows just above 354K contracts during the week ended on November 1, according to the latest CFTC report.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.09 % at $44.93 facing the immediate hurdle at $46.22 (100-day sma) followed by $47.11 (55-day sma) and finally $48.48 (20-day sma). On the other hand, a breakdown of $43.77 (200-day sma) would expose $43.57 (low Nov.4) and finally $42.55 (low Sep.20).

To learn more about this topic, check our video analysis: