WTI flirting with tops near $45.70

Crude oil prices pared initial losses and is now trading back into the positive ground, with the West Texas Intermediate testing daily tops near $45.70 per barrel.

WTI sellers stopped near $45.00

Prices for the barrel of the American benchmark for the sweet light crude oil dropped initially to the $45.00 mark after the International Energy Agency’s (IEA) report noted the compliance with oil output cuts fell in June to 78% from 95%, the lowest level in six months.

However, dip-buyers seem to have emerged around $45.00/bbl and lifted prices to the current area of $45.60/70.

Crude oil prices stay somewhat supported today as well by the recent drop in US supplies, as reported by the API late on Tuesday and the EIA on Wednesday. However, fears of a supply glut and rising scepticism on the ability of the OPEC deal to re-balance the oil market keeps lingering over traders’ sentiment, and there is no sign of them diminishing any time soon. Adding to the ongoing concerns, US oil production ticked higher to nearly 9.4 million barrels per day during the week ended on July 7, recording a fresh cycle high.

Later in the week, driller Baker Hughes will publish its report on the US drilling activity. It is worth recalling that US oil rig count has been increasing almost uninterruptedly since early January, with active oil rigs currently totalling 763.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.44% at $45.69 and a break above $46.48 (high Jul.12) would open the door to $47.03 (50% Fibo of the May-June decline) and then $47.31 (high Jul.4). On the other hand, the immediate support aligns at $44.67 (21-day sma) followed by $44.40 (23.6% Fibo of the May-June decline) and finally $43.65 (low Jul.10).