Crude oil prices are weakening further during the second half of the week, with a barrel of West Texas Intermediate floating in the middle area of 48.00.
WTI at minimum of 4 weeks recent
The prices for the barrel of the benchmark u.s. crude oil light sweet are browsing the last minimum of several weeks in the region of 48.50 as concerns of excess supply have returned to the markets and are still dragging on sentiment.
Adding to the weakness in oil, traders are still skeptical about the effect on the prices of the OPEC/non-OPEC cut the supply in the midst of speculation growing about the likelihood that the agreement could be extended beyond June.
The increase of the oil production of the united States is also working with the bearish sentiment, as evidenced by the increase of active oil rigs in the united States, as reflected in the weekly report of the driller Baker Hughes.
Early in the morning european, sources of nigerian said that the site of Sharara should be reabriéndose soon.
WTI levels to consider
Currently, the barrel of WTI is losing a 1.95% to 48.65 dollars showing the next support to 48.45 $ (78.6% Fibo of the rally from march to April) followed by 47.01 dollars (minimum of 27 in march) and 44.82 dollars (minimum of 22 November 2016) .
On the other hand, a break above 49.12 (sma of 200 days) would aim for $ 49.59 (61.8% Fibo of the rally from march-April) and finally 50.20 (maximum of 26 April).