WTI falls towards $48 post-API report

Crude oil prices came under a renewed pressure in the late US afternoon following the weekly API stock report, with the barrel of West Texas Intermediate erasing the majority of Monday's gains to $48.17. At the moment, the barrel of WTI is trading at $48.22, losing 1.3% on the day.

Despite the heightened expectations of a nine-month extension to OPEC's output cut deal, crude oil prices failed to build on their recent gains as the production in the U.S. continues to counter OPEC's efforts to balance the market. In fact, the American Petroleum Institute (API) on Tuesday announced that the crude oil stocks increased 882K barrels after dropping 5.78 million barrels in the previous week.

• Iran likely to support 9-Month extension of supply cut pact if there is consensus - LiveSquawk
• Kuwait joins Saudis, Russia to seek oil cuts extension until March 2018 - BBG

The barrel of WTI could face the immediate support at $47.35 (May 11 low), on its way to $47 (psychological level) and $46 (May 10 low). On the upside, resistances align at $49 (psychological level), $49.66 (daily high) and $50 (psychological level).