WTI keeps the red on EIA, below $57.00

US supplies dropped more than estimated last week.
WTI bounced off lows, still in red.
Focus now on US oil rig count (Friday).

Pablo Piovano FXStreet

Prices of the barrel of the West Texas Intermediate managed to leave the area of daily lows and tested the $57.00 mark following the EIA’s weekly report.

WTI a tad better on EIA, still in 4 day lows

Prices of the barrel of the American benchmark for the sweet light crude oil rebounded from the vicinity of $56.5, or daily lows, after the EIA reported US crude oil supplies went down more than expected by 5.610 million barrels during the week ended on December 1.

In Addition, weekly distillates stocks increased by 1.667 million barrels and gasoline stockpiles went up by 6.780 million barrels, both readings coming in below consensus.

Further data saw supplies at Cushing decreasing by 2.753 million barrels.

Prices for the black gold are down for the third session in a row and stay on their way to close the second straight week with losses after clinching fresh YTD tops above the $59.00 mark pre-OPEC meeting on November 30.

WTI significant levels

At the moment the barrel of WTI is losing 1.32% at $56.86 facing the next support at $56.55 (low Dec.6) seconded by $54.81 (low Nov.14) and finally $54.08 (55-day sma). On the upside, a break above $57.84 (10-day sma) would aim for $58.88 (high Dec.1) and then $59.05 (2017 high Nov.24).

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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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