WTI dips to lows near $48.70

Crude oil prices have accelerated their correction lower today, dragging the West Texas Intermediate to as low as the $48.70 area per barrel.

WTI lower on supply concerns

Crude oil prices retreated from the vicinity of the $50 mark recorded overnight after supply concerns seem to have returned to the markets, as Nigeria is on its way to recover its production levels following a ceasefire by rebels and ‘Brexit’-induced fears over the demand of crude oil have somewhat ebbed.

The barrel of WTI has gathered further traction on Wednesday after inventories dropped by more than 4 million barrels during last week, according to the EIA’s report, more than initially forecasted.

WTI levels to consider

At the moment the barrel of WTI is down 2.33% at $48.73 facing the next support at $47.24 (55-day sma) ahead of $45.83 (low Jun.17) and finally $43.03 (low May 10). On the flip side, a break above $50.21 (previous 2016 high May 26) would open the door to $51.67 (2016 high Jun.8) and then $53.85 (high Jul.10 2015).