WTI off lows, looking to regain $54.00 ahead of EIA

Crude oil prices are trading within a tight range on Wednesday, with the barrel of West Texas Intermediate losing smalls just below the $54.00 mark.

WTI attention to API report

Prices for the WTI are shedding ground for the second consecutive session today amidst a sharp rebound in the greenback in response to rising market expectations of a rate hike by the Federal Reserve at the March meeting.

WTI lost further momentum after the weekly report by the American Petroleum Institute (API) noted late on Tuesday that US crude oil supplies rose by more than 2.5 million barrels during last week.

Crude oil prices stay under pressure for the time being, as concerns over the supply glut seem to have re-emerged in light of the persistent pick up in US drilling activity, as per weekly reports by Baker Hughes. However, the quite high compliance with the OPEC deal on oil production-cuts keeps limiting occasional pullbacks, giving some decent support to prices. Extra support comes also from the speculative community, as crude net longs remain at record levels as per the latest CFTC report.

Later in the session, US ISM Manufacturing should keep the buck in centre stage ahead of the EIA weekly report on crude oil inventories.

WTI levels to consider

At the moment the barrel of WTI is losing 0.17% at $53.92 facing the immediate support at $53.49 (20-day sma) followed by $53.18 (low Feb.28) and then $53.03 (55-day sma). On the other hand, a surpass of $54.23 (high Feb.28) followed by $54.61 (high Feb.27) and finally $54.94 (high Feb.23).