WTI extends the downside below $53.00 ahead of EIA

Monitoring Desk

TEXAS: Prices of the barrel of WTI remain on the defensive on Wednesday and are now putting the key support at the $53.00 mark to the test.

WTI looks to EIA report

Prices of the barrel of the West Texas Intermediate are down for yet another session today amidst a broad-based selling sentiment surrounding the risk-associated universe.

Also weighing on crude prices, the American Petroleum Institute said US crude oil supplies rose by more than 2.5M barrels during last week, adding to the previous build.

Looking ahead, the EIA will also report on US crude oil inventories later in the NA session along with extra publications in the US docket.

What to look for around WTI

Prices of the barrel of WTI are shedding around $3 since Monday’s new YTD peaks near $55.60 amidst the re-emergence of speculations over a slowdown in global demand. These concerns, in combination with uncertainty in the US-China trade negotiations keep weighing on traders’ sentiment. On the positive side and somewhat limiting occasional dips, crude oil prices remain supported by the ongoing OPEC+ deal to curb production, supply disruptions from Venezuela and Libya and the continuation of US sanctions against Iranian exports.

WTI significant levels

At the moment the barrel of WTI is down 1.41% at $52 and a breakdown of $51.13 (low Jan.28) would aim for $50.83 (55-day SMA) and then $50.34 (low Jan.14). On the flip side, the next up barrier aligns at $53.53 (10-day SMA) seconded by $55.59 (2019 high Feb.4) and finally $58.00 (high Nov.18 2018).

Courtesy: (fxstreet.com)