WTI retreats from highs post-EIA, near $48.70

Crude oil prices have given away their initial gains on Wednesday, with the barrel of West Texas Intermediate coming down from daily tops around $49.30 to the area near $48.60 in the wake of the EIA’s weekly report.

WTI offered on EIA

Prices for the barrel of WTI abandoned the area beyond the $49.00 mark after the EIA reported a smaller than expected draw of US crude oil supplies during the week ended on July 28.

In fact, crude inventories decreased by 1.527 million barrels and weekly distillates stocks dropped by 0.150 million barrels, both prints missing initial estimates.

Additionally, gasoline inventories dropped more than expected by 2.517 million barrels, while supplies at Cushing went down marginally by 0.039 million barrels. The US production rose to 9.43 million barrels from 9.410 previous.

WTI levels to consider

At the moment the barrel of WTI is losing 0.77% at $48.78 facing the next support at $48.55 (low Aug.2) seconded by $48.37 (low Aug.1) 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).