WTI flirts with lows near $58.00 ahead of EIA

The American benchmark for the sweet light crude oil is trading on the defensive on Wednesday around the $58.00 area per barrel.

WTI now looks to data, FOMC

Prices of the barrel of West Texas Intermediate is extending the leg lower after the massive rebound recorded at the beginning of the week to levels above the $63.00 handle, or fresh 4-month tops.

The sharp surge came in response to the drone attack to Saudi oil facilities last Saturday, trimming the Kingdom’s oil output by more than 5 mbpd and triggering the largest disruption in over five decades. The up move, however, continues to lose conviction after Saudi Arabia said repairs could take less than previously estimated.

On the data space, the API reported late on Tuesday a nearly 600K barrels build in US crude oil supplies during last week ahead of the usual and more relevant weekly report by the EIA later in the NA session.

In addition, traders will closely follow the FOMC event later today, where the Fed is expected to reduce rates further. The subsequent press conference by Chief Powell will also be closely followed with particular interest in any mention to the ongoing US-China trade war.

WTI significant levels

At the moment the barrel of WTI is retreating 0.32% at $58.48 and a breach of $56.94 (100-day SMA) would expose $56.31 (200-day SMA) and finally $52.85 (monthly low Sep.3). On the upside, the next hurdle is located at $63.37 (monthly high Sep.16) seconded by $63.79 (high May 20) and then $66.46 (2019 high Apr.23).