WTI retreats from highs, back near $48.20

After bottoming out in the boundaries of the $47.0 mark on Wednesday, prices for the barrel of West Texas Intermediate has retaken the $48.00 handle and above.

WTI rebounds after EIA

Prices for the WTI has reverted the initial dip after the EIA’s weekly report showed US crude inventories rose by more than 4.95 million barrels during last week, taking the US stockpiles to a record of more than 533 million barrels. The data added to Tuesday’s increase in supplies by over 4.5 million barrels reported by the API.

However, the significant draw in Gasoline inventories (-2.811 mb) yesterday prompted WTI to rebound from lows and advance near the mid-$48.00s.

Prices for the black gold stay under pressure nonetheless, as traders continue to weigh the compliance with the OPEC/non-OPEC output cut deal against the rising US oil production, all amidst unabated concerns over the supply glut and a renewed debate over the potential extension of the OPEC deal beyond June 2017.

WTI levels to consider

At the moment the barrel of WTI is up 0.48% at $48.27 facing the next resistance at $48.69 (200-day sma) followed by $48.73 (high Mar.21) and finally $49.62 (high Mar.16). On the flip side, a break below $47.08 (2017 low Mar.22) would open the door to $44.82 (low Nov.29 2016) and then $44.55 (low Nov.18 2016).