24 January 2019, 14:01
- Prices of WTI look for direction around the $52.00 mark/bbl.
- API reported 6.55M barrels build late on Wednesday.
- The weekly EIA report on inventories coming up next.
Crude oil prices are trading within a tight range and are struggling for direction in the second half of the week, currently hovering over the $52.00 mark per barrel.
WTI offered post-YTD peaks
After recording fresh 2019 highs beyond the $54.00 handle on Monday, prices of the West Texas Intermediate have come under renewed pressure, giving away part of those gains and finding quite decent support in the $51.80/60 band.
Prices of WTI have been grinding lower after the IMF revised lower its projections for global growth this year (3.5% from 3.7%) earlier in the week. This news added to the already rising concerns over a global slowdown, particularly following latest results in the Chinese economy.
Late on Wednesday, the American Petroleum Institute reported US crude oil supplies increased by 6.55M barrels during last week, all ahead of today’s report by the DoE.
What to look for around WTI
The ongoing OPEC+ agreement to curb oil output remains the almost exclusive source of support for prices. Also sustaining higher prices, supply concerns in Libya and Venezuela are set to persist for the time being, while current US sanctions limiting Iranian oil exports and a downtrend in US drilling activity also collaborate with the better sentiment. However, this bullish view is eclipsed by the above mentioned possibility of a slowdown in the global economy and fears of a supply glut on the back of increasing US oil production.
WTI significant levels
At the moment the barrel of WTI is gaining 0.12% at $52.16 and a breakout of $54.22 (2019 high Jan.21) would aim for $54.48 (monthly high Dec.4) and finally $58.00 (high Nov.18 2018). On the flip side, immediate contention aligns at $51.80 (low Jan.22) seconded by $50.34 (low Jan.14) and then $49.97 (21-day SMA).