WTI dips to highs near $49.50

FXStreet (Edinburgh) - The barrel of West Texas Intermediate is now losing the grip, deflating to session highs in the mid-$49.00s.

WTI lower on USD

The WTI keeps correcting lower after geopolitical concerns regarding potential disruptions in oil supply from Iraq and Libya pushed prices to the vicinity of $52.40 on Thursday. The strong tone from the US dollar today, later accelerated in the wake of the results from the US labour market, put the WTI under renewed heavy pressure, dragging it to session lows near $49.50.

Further data showed that US oil rigs in use decreased further by 64 to 922 in the week ended on March 6th, according to driller Baker Hughes Inc.

WTI levels to consider

The barrel of WTI is now retreating 2.05% at $49.72 with the immediate support at $48.71 (low Mar.2) ahead of $48.46 (low Feb.27) and finally $47.80 (low Feb.26). On the upside, a breakout of $52.39 (high Mar.5) would open the door to $52.72 (high Feb.19) and then $54.32 (high Feb.17).

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