WTI upside capped above $47.00

Crude oil prices are struggling for direction in the upper end of the recent range, with the barrel of West Texas Intermediate hovering over the $47.20 region for the time being.

WTI still in 6-week tops

The rally in crude oil prices seems to have found some tough resistance in the low-$47.00s so far, coincident with tops seen earlier in the month and the 50% Fibo retracement of the May-June drop ($47.03).

Prices for the WTI stay supported following a larger-than-expected draw in US supplies as per the latest report by the EIA on Wednesday. US crude oil inventories dropped by more than 4.7 million barrels during the week ended on July 14, while another draw in gasoline inventories also supported the upbeat sentiment.

Risks to the ongoing constructive view in crude oil prices are expected to come from unabated concerns over the supply glut and the effectiveness of the OPEC deal to balance the oil markets.

Looking ahead, traders will look to the US oil rig count report by Baker Hughes on Friday and the meeting between key OPEC producers and Russia in St. Petersburg on July 24.

WTI levels to consider

At the moment the barrel of WTI is losing 0.04% at $47.28 facing the next support at $45.85 (38.2% Fibo of the May-June decline) seconded by $45.81 (low Jul.18) and finally $45.50 (21-day sma). On the other hand, a break above $48.16 (100-day sma) would aim for $48.20 (61.8% Fibo of the May-June decline) and finally $49.52 (200-day sma).