WTI leaps to daily highs near $46.50, EIA eyed

Crude oil prices are advancing moderately on Wednesday, lifting the barrel of West Texas Intermediate well above the $46.00 mark for the time being.

WTI now looks to EIA

Prices for the WTI gained further traction today after the API reported late on Tuesday its largest oil draw so far this year, this time by nearly 5.8 million barrels during the week ended on May 5.

WTI has also found extra support during the European morning following news that Saudi Aramco would cut supplies to its Asian customers by around 7 million barrels during June.

Prices of the black gold stay under pressure amidst opposing forces from the current OPEC/non-OPEC deal and rising US oil production, as shown by the relentless increase in US active oil rigs.

In addition, the spectre of the supply glut stays well and sound among traders in spite of the recent decrease in US supplies. In fact, as supplies are going down, Gasoline inventories have been rising, adding to the view that refiners are only ‘moving’ stocks from one place to another.

Looking ahead, the weekly report on US crude oil stockpiles by the EIA is due later in the NA session (-0.93 mb prev.).

WTI levels to consider

At the moment the barrel of WTI is up 1.22% at $46.44 and a break above $46.98 (high May 8) would aim for $47.58 (38.2% Fibo of the April-May drop) and finally $49.31 (200-day sma). On the flip side, the immediate support is located at $45.73 (low May 8) seconded by $43.76 (2017 low May 5) and then $42.20 (low nov.14 2016).