WTI keeps bleeding and takes on fresh weekly lows

• WTI has taken on new weekly lows below the prior 56.77.
• U.S. crude supplies posted a smaller-than-expected weekly decline.

West Texas Intermediate oil has been travelling within a range of $56.49 and $58.34, still bleeding out from yesterday's slide, -1.31% on the day so far.

crude oil prices were pummeled yesterday in the back of a number of geopolitical headlines, including Pompeo's remarks that suggested the Iranians are ready to negotiate on their missile program, at the same time as President Trump's comments on the ability to impose more tariffs on China stoked growth fears.

This sapped risk appetite from the market and saw the complex come under pressure, while API release delivered the final blow. However,  Positive progress could open the door to higher exports, and although Iranian sources subsequently denied the story, oil held its losses.

Meanwhile, U.S. crude supplies posted a smaller-than-expected weekly decline and stockpiles of gasoline and distillates saw sizable gains. As for future, August West Texas Intermediate dropped 84 cents, or 1.5%, to settle at $56.78 a barrel on the New York Mercantile Exchange. That was the lowest front-month contract finish since July 2nd.

WTI levels

 Yesterday, the price broke the 20-day moving average as well as the confluence of the 50 and 200 moving averages of the same period down at 57.90. Today, WTI has taken on new weekly lows below the prior 56.77 and bars now look to the 52 handle before the 14th Jan 50.41 lows. Further lower, the 26th November lows are located at 49.44 as a target.