WTI bounces off 2017 lows near $47.00 on EIA

Crude oil prices remain entrenched into the red territory today, with the West Texas Intermediate testing fresh ytd lows near the $47.00 mark following the EIA report, just to regain some ground soon afterwards.

WTI lower post-EIA

Prices for the black gold are accelerating the downside today after the EIA’s weekly report showed US crude inventories increased by nearly 5 million barrels during last week, more than initially forecasted and reaching a fresh record at 533.1 million barrels.

Additional data saw Distillate Stocks dropping by 1.91 million barrels and Gasoline inventories decreasing by just above 2.8 million barrels.

In addition, supplies at Cushing rose by almost 1.420 million barrels, while US production rose to 9.129 million barrels.

Crude oil stays under heavy pressure as the increasing US oil production is offsetting the potential impact on prices from the OPEC/non-OPEC deal clinched in late 2016. This agreement contemplates a deal to cut the oil output by 1.8 million barrels per day during H1 2017.

Ahead in the week, driller Baker Hughes will publish its weekly report on US oil rig count (+14 prev.

WTI levels to consider

At the moment the barrel of WTI is losing 1.45% at $47.62 and a breakdown of $47.08 (2017 low Mar.22) would aim for $44.82 (low Nov.29). On the flip side, the next resistance lines up at $48.68 (200-day sma) followed by $48.73 (high Mar.21) and finally $49.62 (high Mar.16).