WTI flirting with daily lows near $48.50

Crude oil prices are reverting the recent positive streak so far today, dragging the West Texas Intermediate to the area of session lows in the mid-$48.00s per barrel.

WTI upside capped around $49.00

After three consecutive daily advances, prices of the barrel of the American reference for the sweet light crude oil has been rejected from yesterday’s tops in the boundaries of the key $49.00 mark, sparking the ongoing knee-jerk.

Prices for the black gold now lost some upside momentum following another decrease in US crude oil supplies, as per yesterday’s EIA report. The report also showed a small tick lower in US oil production, adding to investors’ optimism.

Adding to the downside, the better tone in the greenback is weighing on the USD-denominated space, while traders are now looking to the weekly US oil rig count by Baker Hughes, due on Friday (-1 prev.)

WTI levels to consider

At the moment the barrel of WTI is losing 0.70% at $48.41 facing the next support at $47.90 (100-day sma) seconded by $47.03 (50% Fibo of the May-June drop) and finally $46.70 (55-day sma). On the other hand, the next up barrier emerges at $48.87 (high Jul.26) seconded by $49.44 (200-day sma) and then $49.65 (76.4% Fibo of the May-June drop).