WTI upside faltered around $47.00

Crude oil prices are trading on the defensive today, now prompting the barrel of West Texas Intermediate to fade the initial up tick to levels above the $47.00 mark.

WTI reverting the positive streak

Prices for the WTI are trading in the red territory for the first time after eight consecutive daily advances, so far unable to extend the strong rally further north of the $47.00 mark.

Crude oil prices are up nearly 12% since late June’s multi-month lows in the $42.00 neighbourhood, as market participants seem to have abandoned the bearish sentiment backed by the recent tick higher in US oil production and the small decrease in US oil rig count.

However, concerns over the supply glut stay unabated as well as the scepticism around the ability of the OPEC to balance the market, particularly following the recent increase in oil production in Libya and Iraq.

WTI levels to consider

At the moment the barrel of WTI is losing 0.32% at $46.92 and a break below $45.85 (38.2% Fibo of the May-June decline) would aim for $44.56 (10-day sma) and finally $44.40 (23.6% Fibo of the May-June decline). On the flip side, the immediate hurdle aligns at $47.33 (55-day sma) seconded by $48.20 (61.8% Fibo of the May-June decline) and then $49.11 (100-day sma).