WTI breaks below $50.00 on EIA report

Crude oil prices have accelerated the downside today, dragging the West Texas Intermediate to test the $50.00 mark per barrel following the EIA’s report.

WTI weaker on report

Prices for the WTI have plummeted below the psychological $50.00 mark on Wednesday after the EIA reported the biggest build in supplies in Cushing since 2008 at nearly 3.8 million barrels.

WTI took a hit despite crude oil inventories decreased by almost 2.4 million barrels during last week, more than initially estimated, while Gasoline stockpiles have increased by more than 3.4 million barrels

The barrel of WTI quickly dropped to sub-$50.00 levels, or 4-day lows, although the ongoing softer tone in the greenback appears to be limiting the downside somewhat.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.98% at $49.98 facing the next support at $48.98 (low Dec.1) followed by $47.96 (55-day sma) and finally $44.82 (low Nov.29). On the flip side, a breakout of $52.42 (2016 high Dec.5) would aim for $53.89 (low Jul.10 2015) and then 62.58 (high May 6 2015).