WTI in red near $46.00 ahead of API

Crude oil prices are testing daily lows so far today, with the barrel of West Texas Intermediate navigating the boundaries of the $46.00 mark ahead of the API’s report on stockpiles.

WTI focus on API

Renewed concerns over the crude oil supply glut plus skepticism over the ability of the OPEC/non-OPEC output cut deal to balance the oil markets continue to be the main drivers of WTI’s price action for the time being.

In fact, rising US oil production – as demonstrated by the relentless raise in US active oil rigs - keeps challenging the OPEC’s target, while exerting downside pressure on the price of the barrel of the American reference for the sweet light crude oil.

Furthermore, the solid rebound in the greenback is also capping the occasional bull run in crude prices around the $47.00 mark, Monday’s tops.

In the data space, the weekly report on US supplies by the American Petroleum Institute (API) is due later, followed by the EIA’s report on Wednesday and US oil rig count by driller Baker Hughes on Friday.

WTI levels to consider

At the moment the barrel of WTI is down 0.39% at $46.25 facing the next support at $45.73 (low May 8) seconded by $43.76 (2017 low May 5) and then $42.20 (low nov.14 2016). On the upside, a break above $46.98 (high May 8) would aim for $47.58 (38.2% Fibo of the April-May drop) and finally $49.31 (200-day sma).