WTI weaker, extends the drop below $48.00

Crude oil prices are dropping for the second consecutive session today, dragging the barrel of West Texas Intermediate to 3-day lows in sub-$48.00 levels.

WTI lower on OPEC, USD

Prices for the WTI remain on the defensive in response to a generalized strong greenback tso far this week, while uncertainty around the OPEC meeting on November 30 still lingers.

In fact, recent rumours and counter-rumours gyrating around the potential deal to limit the oil output have been weighing on traders’ sentiment, prompting the WTI to retreat from multi-week tops beyond the $49.00 mark seen on Tuesday.

Adding to ongoing concerns, Chinese crude oil imports have decreased to their lowest levels on a daily basis since January.

Later in the NA session, the weekly report on US oil rig count by driller Baker Hughes is due along with US Goods Trade Balance figures and Markit’s Services PMI.

WTI levels to consider

At the moment the barrel of WTI is losing 1.21% at $47.38 with the next support at $47.19 (55-day sma) followed by $45.77 (low Nov.21) and finally $44.84 (200-day sma). On the upside, a breakout of  $49.22 (high Nov.22) would aim for $50.54 (high Jun.22) and then $51.60 (high Oct.10).

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