WTI tumbles to lows near $52.70

Crude oil prices have accelerated the downside today, dragging the barrel of West Texas Intermediate back to sub-$53.00 levels, or fresh multi-day lows.

WTI weaker as supply glut concerns resurface

Prices for the WTI dropped to lows near $52.60 per barrel on Thursday as traders continue to assess the recent increase in crude oil supplies, which showed US production remain at record levels just above 520 million barrels in the week ended on February 24.

According to recent reports by the API and the EIA, US crude oil supplies increased by more than 2.5 million barrels and just above 1.5 million barrels, respectively during last week.

Jitters over the re-emergence of the supply glut have been weighing on sentiment as of late and capped the upside to levels above the $54.00 mark for the time being.

Adding to the renewed concerns, the US drilling activity continued to rise during the past weeks, as showed by the weekly report by driller Baker Hughes (Friday).

On top of that, rising expectations of a rate hike by the Federal Reserve as soon as the March meeting stay supportive of a stronger demand for the US dollar, collaborating with the ongoing leg lower in crude prices.

WTI levels to consider

At the moment the barrel of WTI is losing 1.71% at $52.91 facing the immediate support at $52.66 (low Mar.2) followed by $52.68 (low Feb.16) and then $51.22 (low Feb.8). On the other hand, a surpass of $54.23 (high Feb.28) would aim for $54.61 (high Feb.27) and finally $54.94 (high Feb.23).