WTI clings to gains below $49.00, EIA eyed

Crude oil prices are partially reverting the weekly decline, with the barrel of West Texas Intermediate sticking to the daily gains in the $48.70 region.

WTI attention to EIA

Prices for the WTI are retreating for the second consecutive week so far, with losses exacerbated after the OPEC meeting failed to meet traders’ expectations of deeper oil output cuts and for longer than the agreed 9-month extension. WTI has already shed more than 8% since pre-OPEC meeting levels around the $52.00 mark to yesterday’s low in the $47.70 zone.

Crude oil prices continue to debate between the scepticism surrounding the effectiveness of the OPEC deal to rebalance the oil market and prospects of rising oil production in the US.

In the meantime, prices for the WTI managed to rebound from recent lows after the weekly report on US crude stockpiles by the API showed an important draw of nearly 8.7 million barrels during the week ended on May 26, more than initially estimated.

Later today, the EIA will publish its weekly report on US inventories ahead of the US oil rig count by driller Baker Hughes on Friday.

WTI levels to consider

At the moment the barrel of WTI is up 0.66% at $48.65 facing the next hurdle at $49.48 (55-day sma) followed by $49.72 (200-day sma) and then $50.06 (23.6% Fibo of the May rally). On the flip side, a breach of $47.88 (50% Fibo of the May rally) would aim for $47.74 (low May 31) and finally $46.91 (61.8% Fibo of the May rally).