WTI tumbles more than 2%

• Bearish correction gains momentum below $56.00.
• WTI having worst day since Oct 6.
• Data ahead: API’s weekly report.

Crude oil prices broke earlier today a 1-week range and recently accelerated the decline. The price of the West Texas Intermediate barrel is falling more than 2%. During the last hours lost more than $1 and reached at $55.16 the lowest since November 3.

At the moment of writing, is trading at $55.40, down 2.40%, having the worst performance since October 6. The slide is taking place despite USD weakness and ahead of API weekly inventories report.

Today’s report from the International Energy Agency mentioned that rising prices and weather conditions are slowing demand growth. EIA reduced its demand estimates for next year. The report weakened the demand for crude futures.

WTI Levels to watch

Crude is retreating from 2-year highs, moving toward the 20-day MA that stands around $55.00; below that level, support might lie at $54.35 and then at $53.75. On the upside, now $56.25 is the immediate resistance, followed by $56.75 (daily high) and $57.15 (Nov 13 high).