WTI flirting with lows near $47.80 ahead of EIA

Crude oil prices are fading part of yesterday’s advance, prompting the barrel of West Texas Intermediate to return to the sub-$48.00 area ahead of the weekly report by the DoE.

WTI looks to EIA

Prices for the black gold gained further downside pressure today after Platts reported that the OPEC output in May was the largest since January.

Prices for the WTI rose on Tuesday after the American Petroleum Institute reported another big draw in crude oil supplies during the week ended on June 2. This time crude supplies dropped by 4.62 million barrels, more than initially estimated.

According to the API’s report, supplies decreased in 8 out of the last 10 weeks, while US crude oil production has been steadily on the rise since February.

In the meantime, traders remain vigilant on potential supply disruptions after Saudi Arabia, Egypt, Bahrain and the UAE severed ties with Qatar on Monday, accusing it of supporting Islamic extremism and Iran.

Looking ahead, the EIA will report on the US crude oil inventories later in the NA session, while the upcoming testimony by former FBI Chief J.Comey before the Senate (Thursday) should keep the buck under further pressure.

WTI levels to consider

At the moment the barrel of WTI is losing 0.64% at $47.88 facing the immediate down barrier at $46.74 (low Jun.2) would aim for $45.70 (76.4% Fibo of the May rally) and finally $43.76 (2017 low May 5). On the upside, a breakout of $48.40 (high Jun.6) would open the door to $48.85 (38.2% Fibo of the May rally) and then $49.08 (20-day sma).