WTI drops to lows near $48.30

Pablo Piovano FXStreet

Crude oil prices are extending their leg lower today, with the West Texas Intermediate testing lows near $48.30 per barrel.

WTI in multi-day lows

Prices for the barrel of WTI are losing ground for the third consecutive session so far, shedding more than $3/barrel since last week’s 2016 tops in the boundaries of the $52.00 mark.

A prevailing risk aversion sentiment has been weighing on both commodities and risk-associated assets since early trade today, prompting WTI to accelerate its correction lower.

Fears of a probable ‘Brexit’ scenario added to softer results in Japan and China, all collaborating with prospects of lower growth in the global economy.

Looking to Tuesday’s calendar, US Retail Sales and the API’s weekly report on crude stockpiles will be the main highlights.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.51% at $48.33 facing the next support at $47.75 (low Jun.1) ahead of $46.73 (low May 19) and finally $45.25 (55-day sma). On the other hand, a break above $50.21 (previous 2016 high May 26) would aim for $51.67 (2016 high Jun.8) and then $53.85 (high Jul.10 2015).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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