WTI sidelined above $48.00, API eyed

Crude oil prices are extending its consolidative theme during the first half of the week, taking the barrel of West Texas Intermediate to the area around $48.50.

WTI attention to data

Prices for the barrel of the American reference for the light sweet crude oil seem to have found some decent support around the $48.00 mark for the time being, shedding around $6 since March tops beyond the $54.00 handle.

Increasing US crude oil stockpiles plus a relentless pick up in the US drilling activity continue to weigh on traders’ sentiment, offsetting the positive developments from the output cut deal clinched between OPEC and non-OPEC countries late in 2016.

The USD-denominated space should remain under pressure as the key 2-day FOMC meeting kicks in today, with the likeliness of an announcement of higher rates expected on Wednesday.

Later in the session, the weekly report of crude oil supplies by the American Petroleum Institute (API) is only expected (11.6 mb prev.).

WTI levels to consider

At the moment the barrel of WTI is up 0.35% at $48.57 and a breakout of $48.72 (200-day sma) would expose $50.11 (high Mar.10) and finally $50.92 (100-day sma). On the downside, the next support is located at $47.90 (low Mar.13) followed by $44.82 (low Nov.29 2016) and then $42.55 (low Sep.20 2016).