WTI trims losses ahead of EIA, FOMC

Crude oil prices keep trimming earlier losses on Wednesday, prompting the barrel of West Texas Intermediate to bounce off the $46.00 neighbourhood to the current mid-$44.00s.

WTI cautious ahead of EIA, FOMC

Prices for the WTI are currently snapping a positive 4-day streak after rebounding from last week’s lows in the $41.00 neighbourhood, although gains have so far faltered ahead of the critical $45.00 mark.

WTI has been trading on the defensive today after US crude oil stockpiles dropped more than a million barrels and gasoline inventories rose by more than 2 million barrels, the biggest increase in six months, according to Tuesday’s report by the API.

Next on tap will be the EIA’s weekly report on crude inventories ahead of the FOMC minutes.

WTI levels to consider

At the moment the barrel of WTI is down 0.36% at $46.41 facing the next hurdle at $46.73 (high Aug.16) ahead of $50.54 (high Jun.22) and then $51.67 (2016 high Jun.9). On the other hand, a breach of $45.35 (100-day sma) would expose $41.10 (low Aug.11) and finally $40.31 (200-day sma).