WTI recedes to $50.00/bbl, API on sight

Crude oil prices are retreating from recent tops on Tuesday, now dragging the barrel of the West Texas Intermediate to the $50.00 neighbourhood ahead of the API report.

WTI weaker on USD-buying, focus on API

Prices of the barrel of the American reference for the sweet light crude oil are posting the first daily decline after six consecutive advances, deflating a tad from yesterday’s peaks in the $50.40 area, or fresh 2-month tops.

Crude oil prices have been gaining ground as of late following declining US crude oil supplies, as reported by the API and the EIA, as well as a perception by traders that the supply glut could be easing somewhat.

However, concerns among traders stay well and sound following an increase in the OPEC output during July, mainly in response to rising production from Libya, which is exempt from the OPEC deal.

Looking ahead, the API report on US crude oil supplies is due ahead of the DoE’s weekly report expected tomorrow. On Friday, driller Baker Hughes will publish its weekly survey on US oil rig count.

WTI levels to consider

At the moment the barrel of WTI is losing 0.62% at $49.86 facing the next support at $49.65 (76.4% Fibo of the May-June drop) seconded by $49.43 (200-day sma) and finally $48.20 (61.8% Fibo of the May-June drop). On the other hand, the next up barrier emerges at $50.41 (high Aug.1) seconded by $52.00 (high May 25) and then $53.76 (high Apr.12).