WTI retreats from YTD peaks near $54.00 ahead of EIA

The 2021 rally in crude oil prices remains well and sound for yet another session, with prices of the WTI trading at shouting distance from the $54.00 mark per barrel on Wednesday.

WTI focused on EIA, pandemic

Prices of the West Texas Intermediate come under some selling pressure after briefly clinching fresh peaks in the vicinity of the $54.00 mark per barrel earlier on Wednesday, area last visited in February 2020.

The initial upside in crude oil prices was sustained by the larger-than-expected drop in US crude oil supplies, as reported by the API late on Tuesday. The upbeat data add to recent news regarding the unilateral output cut from Saudi Arabia for the next couple of months.

However, the now faster advance of the coronavirus pandemic – particularly in China – seems to have tempered oil bulls and prompted the ongoing correction in prices.

Data wise, the EIA will publish its usual report on weekly US crude oil supplies later in the NA session.

WTI significant levels

At the moment the barrel of WTI is losing 0.66% at $52.91 and a breach of $47.20 (monthly low Jan.4) would expose $46.18 (low Dec.23) ahead of $43.94 (monthly low Dec.2). On the upside, the next up barrier emerges at $53.90 (2021 high Jan.13) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020).