WTI sticks to gains near $47.00

Crude oil prices are in recovery-mode so far today, with the barrel of West Texas Intermediate testing the $46.80/90 band and posting moderate gains for the day.

WTI supported near $46.50

Prices of the barrel of the American reference for the sweet light crude oil remain in the negative ground so far this week, although some decent support seems to have emerged in the $46.50 region, or session lows.

The now softer tone around the buck following unconfirmed rumours on G.Cohn’s resignation is also helping crude oil prices to regain some appeal.

Prices for the WTI were on the defensive earlier in the day in the wake of positive results from the US docket, where the Philly Fed index and initial claims both came in above expectations and boosted the demand for the buck.

The downside pressure around crude oil has intensified this week in spite of the persistent decrease of US crude supplies, as per the recent reports by the EIA.

However, prospects of a slowdown in the Chinese demand for crude, rising US production and unabated jitters over the supply glut keep lingering and weighing on traders’ sentiment.

WTI levels to consider

At the moment the barrel of WTI is up 0.17% at $46.86 and a break above $47.23 (38.2% Fibo of the June-August up move) would aim for $47.97 (100-day sma) and then $48.47 (21-day sma). On the other hand, the immediate support aligns at $46.67 (low Aug.16) followed by $46.51 (55-day sma) and finally $46.24 (50% Fibo of the June-August up move).