WTI weaker, finds support near $47.00

Crude oil prices remain on the defensive so far this week, dragging the barrel of West Texas Intermediate to the vicinity of the $47.00, where some buyers seem to have emerged.

WTI focus on Middle East, API

Prices for the WTI slipped further on Tuesday as traders remain wary of the ongoing tension between Qatar and its Arab peers after Saudi Arabia, Bahrain, Egypt and UAE severed ties with the small oil-producer nation on Monday, accusing it of supporting Islamic extremism and Iran.

The weakness around crude oil prices has intensified traders’ concerns that the current effervescence in the Middle East could undermine the recently agreed extension of the OPEC deal to cut the oil output until Q1 2018.

In the meantime, prices of the barrel of the American reference for the sweet light crude oil are retreating for the sixth consecutive session today, shedding around 10% since pre-OPEC deal tops near the $52.00 mark to last week’s low in the $46.70 region.

Looking ahead, the American Petroleum Institute (API) will publish its weekly report on US crude stockpiles later in the NA session, ahead of the EIA’s report due tomorrow and oil rig count by driller Baker Hughes on Friday.

WTI levels to consider

At the moment the barrel of WTI is losing 0.19% at $47.31 facing the immediate down barrier at $46.74 (low Jun.2) would aim for $45.70 (76.4% Fibo of the May rally) and finally $43.76 (2017 low May 5). On the upside, a breakout of $47.88 (50% Fibo of the May rally) would surpass $48.42 (high Jun.5) and then $49.01 (20-day sma).