WTI weaker, hovering over $53.00, EIA on sight

Pablo Piovano FXStreet

Crude oil prices are struggling to define a direction on Wednesday, with the barrel of West Texas Intermediate down smalls in the $53.00 neighbourhood.

WTI softer ahead of EIA

Prices for the WTI remain on the defensive today amidst a solid rebound in the greenback, exacerbated following Tuesday’s testimony by Chief J.Yellen.

Also weighing on sentiment, the API has reported late on Tuesday another build in US crude oil supplies, this time of nearly 10 million barrels during last week. The data add to last week’s massive build in stockpiles and the persistent increase in the US drilling activity, as reported by baker Hughes on Friday (US oil rigs up by 8 to 591).

Later in the session, Yellen will testify before the House Financial Services Committee along with further US data releases, Fedspeak and the official report on crude oil inventories by the DoE.

WTI levels to consider

At the moment the barrel of WTI is losing 0.08% at $53.16 and a breach of $52.75 (low Feb.15) would aim for $52.59 (55-day sma) and then $51.22 (low Feb.8). On the upside, the next hurdle is located at $53.90 (high Feb.13) followed by $54.13 (high Feb.10) and finally $54.34 (high Feb.2).

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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