WTI gaining traction around $48.00, EIA eyed

Crude oil prices are managing to revert part of the recent downside, now lifting the West Texas Intermediate to the $48.00 area per barrel.

WTI bounces off $47.30

Prices for the WTI are advancing nearly 1% today after dip-buyers seem to have re-emerged around yesterday’s lows in the $47.35/30 band.

In addition, WTI gathered some buying interest after the API reported late on Tuesday an unexpected draw of 4.2 million barrels during the week ended on April 28, more than previously estimated.

While jitters over the supply glut seems to have dwindled somewhat, markets keep debating the likeliness of an extension of the OPEC/non-OPEC output cut deal beyond the initial timeline (June) and the effects on prices of the ongoing deal.

Looking ahead, the weekly EIA report on crude oil inventories is due later in the NA session (-3.641 mb prev.), ahead of the key FOMC meeting, where bets remain firmly on the ‘on hold’ side.

WTI levels to consider

At the moment the barrel of WTI is advancing 0.80% at $48.04 and a surpass of $48.45 (78.6% Fibo of the March-April rally) would aim for $49.22 (200-day sma) and finally $49.59 (62.8% Fibo of the March-April rally). On the other hand, the next support lines up at $47.35 (low May 2) followed by $47.01 (2017 low Mar.22) and then $44.82 (low Nov.29 2016).