WTI bounces off lows, still weak around $46.50 ahead of API

Crude oil prices are accelerating their daily decline on Wednesday, with the West Texas Intermediate currently navigating the mid-$46.00s after testing lows near $46.10 earlier in the session.

WTI offered ahead of API

Prices of the barrel of the American reference for the sweet light crude oil are retreating for the first time after nine consecutive daily advances, breaking below the key $47.00 handle and slipping back towards the vicinity of $46.10, where it seems to have found some initial support.

In addition, prices for the black gold reacted adversely after Russia argued earlier in the session that it will not support deeper oil output cuts amidst rising scepticism over the ability of the OPEC/non-OPEC agreement to balance the oil market.

In the data space, the American Petroleum Institute (API) will publish its report on US crude oil stockpiles ahead of tomorrow’s official DoE’s report. On Friday, driller Baker Hughes will release its weekly report on US oil rig count (-2 prev.).

WTI levels to consider

At the moment the barrel of WTI is losing 1.25% at $46.48 and a break below $45.85 (38.2% Fibo of the May-June decline) would aim for $44.97 (10-day sma) and finally $44.40 (23.6% Fibo of the May-June decline). On the flip side, the immediate hurdle aligns at $47.26 (55-day sma) seconded by $48.20 (61.8% Fibo of the May-June decline) and then $49.95 (100-day sma).