WTI tumbles to lows near $48.30, API eyed

Crude oil prices are extending the downside for the second consecutive week so far on Wednesday, with the barrel of West Texas Intermediate now testing lows in the $48.30 region.

WTI now looks to the API’s report

Prices of the barrel of the American reference for the sweet light crude oil are down nearly 3% today, dropping to fresh multi-day lows in the vicinity of $48.30 as traders continue to unwind their long positions following the OPEC fiasco.

Adding to the downside, concerns over the supply glut seem to have resurfaced in light of rising US oil production and the relentless pick up in US oil rig count, as per the latest report by driller Baker Hughes.

WTI prices shed already around 7% since last week’s tops in the $52.00 neighbourhood prior to the critical OPEC meeting, while the speculative community increased its net long positions to 3-week tops ahead of the event.

Ahead in the session, the weekly report on US stockpiles by the API is due later followed by tomorrow’s EIA report on US supplies.

WTI levels to consider

At the moment the barrel of WTI is losing 2.86% at $48.24 and a breach of $48.03 (low May 17) would aim for $47.58 (38.2% Fibo of April-May drop) and finally $46.12 (23.6%% Fibo of April-May drop). On the upside, the next hurdle is located at $49.70 (200-day sma) followed by $50.29 (high May 29) and then $50.90 (100-day sma).