WTI reverts the drop, tests $50.00 on EIA

Pablo Piovano FXStreet

Crude oil prices have abruptly trimmed most of its daily losses following today’s report from the EIA, lifting the barrel of WTI back to the vicinity of $50.00.

WTI rebounds from sub-$49.00 levels

Prices for the barrel of West Texas Intermediate are quickly gathering steam after the EIA’s reported crude oil supplies have decreased by more than 0.553 million barrels during last week vs. a forecasted build up of nearly 1.7 million barrels.

Further data saw Gasoline inventories dropping by nearly 2 million barrels and supplies at Cushing decreasing by almost 1.4 million barrels.

Today’s data contrast with yesterday’s unexpected build up in US oil stockpiles of nearly 5 million barrels, as reported by the API late Tuesday.

In addition, the persistent selling pressure around the greenback continues to support the USD-denominated assets, prompting WTI to revert two consecutive sessions with losses for the time being.

WTI levels to consider

At the moment the barrel of WTI is retreating 0.18% at $49.87 facing the next support at $49.16 (low Oct.9) followed by $47.23 (55-day sma) and finally $46.44 (100-day sma). On the other hand, a surpass of $51.93 (2016 high Oct.19) would open the door to $53.89 (high Jul.10 2015) and then $62.58 (high May 6 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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