Crude oil prices have resumed the downside on Tuesday

Crude oil prices have resumed the downside on Tuesday, with the barrel of West Texas Intermediate flirting with daily lows around the $49.00 mark.

WTI attention to API

Crude oil prices have come under renewed selling pressure today, testing 2-day lows in the $49.00 neighbourhood in response to rising concerns over the supply glut.

WTI lost momentum after the rejection from last week’s tops in the boundaries of the $52.00 mark, particularly after the OPEC meeting disappointing investors that were waiting for deeper output cuts and for longer than Q1 2018.

Concerns over the supply glut appear to have re-emerged and keep weighing among traders, all in light of the relentless increase in the US drilling activity. According to Baker Hughes, oil rig count went up by 2 to 722 during the week ended on May 19, recording its 19th consecutive gain.

Later in the NA session, the American Petroleum Institute (API) will publish its weekly report on US crude stockpiles (1.5 mb prev.).

WTI levels to consider

At the moment the barrel of WTI is losing 1.27% at $49.17 and a breach of $48.76 (50% Fibo of April-May drop) would aim for $48.63 (20-day sma) and finally $48.18 (low May 26). On the upside, the next hurdle is located at $50.29 (high May 29) followed by $50.92 (100-day sma) and then $52.00 (high May 25).

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