WTI weaker, comes down to test $45.00

Crude oil prices are reverting part of yesterday’s strong advance, now sending the West Texas Intermediate to session lows near the $45.00 mark per barrel.

WTI now looks to EIA, Doha

Prices for the WTI have retreated from Tuesday’s spike to the area of the 100-day sma around the $46.00 handle after uncertainty on the potential deal to limit oil production seems to have gathered traction among traders.

Adding to the unclear scenario, some OPEC members will hold informal talks in Doha on Friday, under the Gas Exporting Countries Forum.

WTI remains under pressure as well after US crude oil supplies increased more than expected by nearly 3.7 million barrels during last week, as reported by the API late on Tuesday. It is worth mentioning that Baker Hughes reported on Friday that US oil rig count has increased by 2 to 452 during the same period.

Ahead in the session, the greenback will stay in the limelight as US Industrial and Manufacturing Production, Capacity Utilization, the NAHB index and the DoE’s report on crude oil supplies are all due along with the speech by Philly Fed P.Harker (2017 voter, hawkish).

WTI levels to consider

At the moment the barrel of WTI is losing 1.59% at $45.08 and a breach of $42.20 (low Nov.14) would aim for $41.10 (low Aug.11) and then $37.61 (low Apr.18). On the other hand, the next hurdle aligns at $46.19 (high Nov.15) ahead of $46.96 (55-day sma) and finally $48.75 (high Aug.19).

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