Crude oil prices are trading on a positive mood so far today, with the American benchmark for the sweet light crude trading above the $46.00 mark per barrel ahead of the EIA’s report due later in the session.
WTI focus on EIA
Prices for the barrel of West Texas Intermediate are trading within a narrow range today, while traders have already digested the unexpected build in US crude oil inventories of more than 1.6 million barrels during last week, as reported by the American Petroleum Institute (API) late on Tuesday.
The positive momentum in crude oil prices remain bolstered today by the significant draw of gasoline supplies reported by the API yesterday against the backdrop of an already strong gasoline market.
However, jitters over the potential supply glut stay far from abated amongst traders and continue to be a source of concern amidst rising production in Nigeria and Libya, which continue to hamper the efforts by the OPEC to successfully rebalance the oil market.
Looking ahead, the official report on US crude oil inventories by the DoE is due ahead of Friday’s report by driller Baker Hughes on the US drilling activity.
WTI levels to consider
At the moment the barrel of WTI is gaining 0.17% at $46.48 and a break above $47.03 (50% Fibo of the May-June decline) would expose $47.31 (high Jul.4) and finally $48.21 (100-day sma). On the other hand, the immediate support aligns at $45.85 (38.2% Fibo of the May-June decline) seconded by $45.22 (21-day sma) and finally $43.65 (low Jul.10).
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