WTI tumbles to 2-week lows near $51.50 ahead of EIA

Prices of the barrel of the West Texas Intermediate extends the decline to fresh multi-day lows in the $51.50 region at the end of the week.

WTI looks offered ahead of EIA

Crude oil prices extend further the correction from recent tops in the $54.00 neighbourhood on the back of the better tone in the greenback and the profit taking mood in light of the strong gains recorded early in the year.

Another driver pushing prices lower is the quick pick-up in coronavirus cases across the globe amidst a generalized slow vaccine campaign, all morphing into further and tighter restriction/lockdown measures and directly impacting on the economic recovery.

In the docket, the EIA will release its weekly report on US crude oil supplies later in the NA session. It is worth recalling that late on Wednesday the API unexpectedly reported a nearly 2.6 million barrels build during last week.

What to look for around WTI

Prices of the American reference for the sweet light crude oil are seen some correction from peaks near $54.00. Past news regarding Saudi Arabia (unilateral oil output cut), the decision of the OPEC+ to refrain from increasing oil production and further US fiscal stimulus already anticipated by traders collaborated with the upbeat mood surrounding the commodity, particularly in the first half of the new year. However, the relentless increase of coronavirus cases amidst the vaccine rollout coupled with fresh lockdown measures mainly in China and Europe keeps traders somewhat worried and recovery prospects tempered.

WTI significant levels

At the moment the barrel of WTI is losing 1.55% at $52.18 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 resistance aligns at $53.90 (2021 high Jan.13) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020).