WTI eases from tops, still around $48.00 ahead of API

Crude oil prices have now surrendered initial gains, prompting the barrel of West Texas Intermediate to return to the $48.00 neighbourhood ahead of the API report due later today.

WTI up on OPEC rumours

Prices for the black gold are struggling to extend the recent rebound today and stay underpinned by recent rumours suggesting the likelihood that the OPEC could extend its output cut deal for an extra three months.

Further news saw the oil cartel now expecting the oil demand to increase to 1.42 mbpd during this year and 1.35 mbpd in 2018 (vs. previous estimates at 1.37 mbpd and 1.28 mbpd, respectively).

Looking ahead, the American Petroleum Institute will publish its weekly report on US cude oil supplies ahead of tomorrow’s report by the EIA and Friday’s US oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is losing 0.02% at $48.06 facing the immediate support at $47.84 (10-day sma) seconded by $47.62 (21-day sma) and then $47.43 (32.8% Fibo of the August drop). On the upside, a break above $48.27 (high Sep.11) would open the door to $48.58 (61.8% Fibo of the August drop) and finally $49.42 (high sep.6).