WTI leaps to session tops above $47.00 on EIA

Crude oil prices moved higher on Wednesday in response to another reported draw by the EIA, lifting the barrel of West Texas Intermediate to fresh tops beyond the $47.00 mark.

WTI bid on upbeat EIA report

Prices for the WTI added to earlier gains after the weekly report by the EIA showed a decrease of 4.727 million barrels during the week ended on July 14.

The EIA also reported a draw of 4.445 million barrels in gasoline, while weekly distillate stocks dropped by 2.137 million barrels. In addition, supplies at Cushing decreased marginally by 0.0223 million barrels.

The focus of attention among traders will now shift to Friday’s US oil rig count by driller Baker Hughes and the OPEC meeting in St. Petersburg on July 22.

However, jitters over the potential supply glut stay far from abated amongst traders and continue to be a source of concern amidst rising production in Nigeria and Libya, which continue to hamper the efforts by the OPEC to successfully rebalance the oil market.

WTI levels to consider

At the moment the barrel of WTI is gaining 1.03% at $46.88 and a break above $47.18 (spike Jul.19) would expose $47.31 (high Jul.4) and finally $48.21 (100-day sma). On the other hand, the immediate support aligns at $45.85 (38.2% Fibo of the May-June decline) seconded by $45.22 (21-day sma) and finally $43.65 (low Jul.10).