WTI pauses 5-day rally on Irma fears, rising Libyan output

Oil futures on NYMEX fell for the first time in six days, despite stalled USD buying, as the bears now looking to extend the break below $ 49 mark ahead of the EIA crude supplies data.

The renewed weakness seen in the black gold is mainly driven by concerns surrounding interruption of the crude shipments due to hurricane Irma in the Caribbean. Moreover, rising output levels from the Libyan Sharara oilfield, the country’s biggest oilfield, resumed production after the shutdown.

Further, expectations of a build in the US crude inventories last week also dampens the sentiment around the commodity. However, the losses remain restricted amid rising crude demand from the US refineries, as they recovery the recent flooding caused by Hurricane Harvey.

All eyes now remain on the US EIA crude stockpiles report for fresh direction. At the time of writing, WTI trades -0.33% lower at $ 48.96, while Brent drops -0.33% to $ 54.02.

WTI technical levels 

“$50 (psychological level) remains as a critical hurdle for the WTI ahead of $50.50 (Aug. 1 high) and $52 (May 5 high). On the downside, supports could be seen at $48.50 (previous low), $48 (psychological level) and $47.15 (Sep. 5 low),” Eren Sengezer, Analyst at FXStreet noted.