WTI slips to session lows near $51.20

After climbing to fresh 2016 highs in levels just below the $52.00 mark per barrel on Wednesday, the West Texas Intermediate has now receded towards the $51.30/20 band.

WTI weaker on USD buying, profit taking

Crude oil prices are giving away part of the recent advance to fresh YTD peaks near the $52.00 handle today following a profit taking sentiment and a pick up in the demand for the US dollar.

The recent draws in crude oil inventories reported by the API on Tuesday and EIA on Wednesday have collaborated with the upside momentum around crude oil prices so far this week, although the up move seems to have run out of steam near $52.00.

In the meantime, the stronger greenback and scepticism around the deal to freeze oil output at the next OPEC meeting in Vienna remain the exclusive driver behind the price action of crude oil.

It is worth recalling that according to the latest CFTC report, WTI speculative net longs have reached levels last seen in July 2014 above 413K contracts during the week ended on October 11. Back to the day, the WTI was trading above the $100 mark per barrel.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.14% at $51.23 and a breach of $49.15 (low Oct.10) would expose $49.10 (20-day sma) and finally $46.71 (55-day sma). On the other hand, the next up move aligns at $51.93 (2016 high Oct.19) followed by $53.89 (high Jul.10 2015) and then $62.58 (high May 6 2015).