WTI tumbles to lows in sub-$47.00 levels

Crude oil prices are intensifying its decline today, now dragging the West Texas Intermediate to fresh lows in the sub-$47.00 zone per barrel.

WTI focus on data

Prices for the WTI are now retreating for the fourth consecutive session, as traders continue to unwind the long crude oil long positions after the OPEC meeting failed to meet markets’ expectations last week.

It is worth mentioning that the oil cartel and 11 other non-OPEC countries have decided last week to extend to Q1 2018 the output cut deal agreed in late November 2016 and with original deadline in June 2017.

Recent draws in US crude oil supplies as reported by the API (Wednesday) and the EIA (Thursday) did nothing to curb the bearish note around crude oil prices, with WTI shedding almost 10% since pre-OPEC peaks at $52.00 (May 25) to current levels near $46.80.

Looking ahead, driller Baker Hughes will publish its weekly report on US oil rig count, while May’s non-farm payrolls should keep the focus on the buck later in the session.

WTI levels to consider

At the moment the barrel of WTI is losing 2.73% at $47.04 and a breach of $46.84 (low Jun.2) would aim for $45.70 (76.4% Fibo of the May rally) and finally $43.76 (2017 low May 5). On the other hand, the next up barrier aligns at $48.20 (high Jun.2) followed by $48.86 (20-day sma) and then $49.71 (200-day sma).