WTI drops to lows near $49.00 ahead of EIA

Crude oil prices are extending the bearish note on Wednesday, sending the barrel of West Texas Intermediate to the proximity of the $49.00 mark.

WTI focus on EIA report

Prices for the WTI faded the initial positive tone, although it remains within a tight range ahead of the key weekly report on US inventories by the EIA, due later in the NA session.

WTI stays under pressure following yesterday’s unexpected build in US crude stockpiles measured by the American Petroleum Institute (API) of nearly 900K barrels during the week ended on April 24.

In addition, the renewed bid tone around the buck keeps putting the USD-denominated universe under further pressure, while opening at the same time a potential visit of Tuesday’s 4-week lows near $48.80.

The broader scenario around crude oil prices stays unchanged nonetheless, as traders continue to gauge the rising US oil production against the current OPEC/non-OPEC deal to cut the output and the probability of its extension beyond the initial timeline due in June.

WTI levels to consider

At the moment the barrel of WTI is losing 0.67% at $49.23 facing the next support at $49.10 (200-day sma) followed by $49.03 (low Apr.24) and then $48.45 (78.6% Fibo of the March-April rally). On the other hand, a break above $49.59 (61.8% Fibo of the March-April rally) would aim for $50.22 (high Apr.24) and finally $51.15 (20-day sma).