WTI slumps below near $48.00

FXStreet (Edinburgh) – The barrel of West Texas Intermediate is now accelerating its decline to multi-month lows in the $48.30/20 band

WTI lower on supply concerns

Crude oil prices are extending the downside momentum today as increasing fears around the current oil supply glut continue to grow bigger amongst traders, taking the WTI below the $49.00 handle per ounce, levels last seen in March.

Fanning the flames, output of OPEC members has been growing in the last weeks, and the cartel has already shown no intentions to scale back its production.

In the same direction, the weekly report on crude oil inventories by the EIA has seen stockpiles unexpectedly increase by nearly 2.5 million barrels, collaborating with the downside sentiment.

WTI levels to watch

At the moment WTI is down 1.65% at $48.38 and a break below $49.22 (low Jul.23) would aim for $48.11 (low Apr.2) and finally $47.05 (low Apr.1). On the other hand, the immediate up barrier lies at $52.54 (high Jul.16) followed by $53.94 (high Jul.15) and then $54.35 (high Jul.10).

The barrel of West Texas Intermediate is now accelerating its decline to multi-month lows in the $48.30/20 band..

(Market News Provided by FXstreet)