WTI testing weekly lows post-EIA

Pablo Piovano FXStreet

Crude oil prices have resumed the downside on Wednesday, now forcing the West Texas Intermediate to challenge recent lows in the $47.40 region per barrel.

WTI offered on EIA

Prices for the barrel of the American reference for the sweet light crude oil are extending the pullback after crude oil supplies decreased by 0.930 million barrels during the week ended on April 28, less than initially estimated, according to the latest report by the EIA.

Furthermore, Weekly Distillate Stocks dropped by 0.562 million barrels and Gasoline Inventories rose by 0.191 million barrels, bettering forecasts.

Additionally, supplies at Cushing went down by 0.728 million barrels and the US oil production rose by 28K barrels to 9.293 million barrels.

Later in the session, WTI should stay under pressure via USD dynamics in light of the FOMC meeting.

WTI levels to consider

At the moment the barrel of WTI is retreating 0.34% at $47.44 facing the immediate support at $47.34 (low May 3) followed by $47.01 (2017 low Mar.22) and then $44.82 (low Nov.29 2016). On the upside, a surpass of $48.45 (78.6% Fibo of the March-April rally) would aim for $49.22 (200-day sma) and finally $49.59 (62.8% Fibo of the March-April rally).

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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