WTI recovery struggles around $47.70, Harvey eyed

Crude oil prices have started the week on the wrong footing, now dragging the barrel of West Texas Intermediate to the mid-$47.00s, just above daily lows near $47.20.

WTI now looks at Hurricane Harvey

Prices of the barrel of the American benchmark for the sweet light crude oil stay on the defensive so far today despite Hurricane Harvey keeps the oil production in the region under pressure.

It is worth mentioning that Harvey touched mainland over the weekend, triggering large-scale flooding and forcing refineries and the Houston port to close.

In the data space, driller Baker Hughes reported on Friday that US active oil rigs decreased by four to 759 in the week ended on August 18, recording the second consecutive drop for the first time this year.

However, prospects of increasing US oil production, unabated jitters over the likelihood of supply glut and lower-than-expected compliance with the OPEC deal should continue to keep oil prices under pressure.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.04% at $47.38 facing the next support at $47.03 (low Aug.21) seconded by $46.66 (55-day sma) and then $46.46 (low Aug.17). On the flip side, a break above $48.41 (21-day sma) would open the door to $48.75 (high Aug.21) and finally $49.65 (200-day sma).