WTI drops to lows around $47.20, EIA eyed

It seems crude oil prices have resumed its downside on Wednesday, now dragging the West Texas Intermediate to the $47.20 area per barrel.

WTI now looks to EIA’s report

Prices for the WTI have retraced yesterday’s advance and have now returned to the $47.30/20 band amidst a better tone around the greenback and a huge build up in US stockpiles reported by the API on Tuesday. According to the API’s report, crude oil stockpiles rose by nearly 4.5 million barrels during the week ended on August 19.

Ahead in the day, the EIA will publish its weekly report on US crude oil inventories ahead of Friday’s oil rig count by driller Baker Hughes.

Adding to the downbeat sentiment in oil, scepticism continues to linger regarding a potential deal on an output freeze at the OPEC meeting next month.

WTI levels to consider

At the moment the barrel of WTI is losing 1.77% at $47.25 facing the next support at

$45.78 (55-day sma) followed by $41.10 (low Aug.11) and finally $40.49 (200-day sma). On the upside, a breakout of $50.54 (high Jun.22) would open the door to $51.67 (2016 high Jun.9) and then $53.89 (high Jul.10 2015).