WTI on a better mood, regains $46.00 and above

Crude oil prices are trading on a positive fashion today following yesterday’s deep pullback, taking the barrel of West Texas Intermediate to the $46.00 neighbourhood after bottoming out near $45.70 on Wednesday.

WTI supported around $45.70

Prices of the barrel of the American reference for the sweet light crude oil have tanked on Wednesday following the unexpected increase in crude oil inventories, as reported by the DoE. Yesterday’s figures marked a sharp contrast with the decrease by more than 4.6 million barrels reported by the API the day before.

It is worth mentioning that the EIA reported on Wednesday that US crude oil supplies increased by nearly 3.3 million barrels during the week ended on June 2, catching markets off guard and sparking a sharp sell off to the $45.70 region.

In the meantime, the sentiment around crude oil continues to gravitate between the renewed effervescence in the Middle East, prospects of rising US oil production and headlines coming from the recent extension of the OPEC/non-OPEC deal to cut oil output until Q1 2018.

WTI levels to consider

At the moment the barrel of WTI is up 0.79% at $46.08 and a breakout of $46.91 (61.8% Fibo of the May rally) would open the door to $48.40 (high Jun.6) and then $48.89 (20-day sma). On the flip side, the next down barrier is located at $45.65 (low Jun.7) seconded by $45.53 (hourly low May 9) and finally $43.76 (2017 low May 5).