WTI challenges lows near $45.00 following IEA, USD

Crude oil prices are so far snapping a 3-day positive streak today, sending the West Texas Intermediate to test the key support around the $45.00 mark per barrel.

WTI weaker on USD strength

The continuation of the buying bias around the greenback is pushing the barrel of WTI to the lower end of the range near the $45.00 handle.

Adding to the downbeat sentiment, the IEA said in its monthly report that oversupply in oil markets could extend to next year if the OPEC does not cut its output. The Paris-based agency added that global supply rose to nearly 98 mbpd during October, following record output levels from the OPEC and rising production from non-OPEC countries.

In the meantime, prices for the black gold remain resilient so far this week despite the recently reported increase in weekly crude supplies by the API and the EIA and the prospects of a stronger buck.

Ahead in the week, markets’ focus will remain on US politics after Trump’s win, while the report on US drilling activity by Baker Hughes is only expected on the data front. 

WTI levels to consider

At the moment the barrel of WTI is losing 0.35% at $45.11 facing the immediate support at $43.07 (low Nov.9) followed by $42.55 (low Sep.20) and finally $41.10 (low Aug.11). On the upside, a breakout of $45.95 (high Nov.9) would aim for $46.07 (100-day sma) and finally $47.62 (20-day sma).

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