WTI weaker around $47.40, API eyed

Crude oil prices are extending the weekly correction lower on Tuesday, now dragging the barrel of West Texas Intermediate to the $47.40/30 region, or 3-week lows.

WTI now looks to API

Unabated concerns over the potential supply glut and the strong rebound in the greenback has been weighing on sentiment around the black gold as of late, relegating the barrel of WTI to the vicinity of the Fibo retracement of the June-August up move near $47.20.

In fact, tracked by the US Dollar Index, the buck is up for the second session in a row, reverting the pessimism following Friday’s US inflation figures while finding support in recent upbeat Fedspeak.

On the positioning front, crude oil net longs climbed to 2-week tops during the week ended on August 8, according to the latest CFTC report.

Later in the session, the API will publish its weekly report in US supplies, while US July’s retail sales should keep the focus on USD.

WTI levels to consider

At the moment the barrel of WTI is losing 0.42% at $47.39 and a break below $47.23 (38.2% Fibo of the June-August up move) would aim for $46.57 (55-day sma) and finally $46.24 (50% Fibo of the June-August up move). On the upside, the next hurdle emerges at $48.01 (100-day sma) seconded by $48.47 (21-day sma) and then $49.14 (high Aug. 14).