WTI plummets over 4% post-EIA, near $46.00/bbl

Crude oil prices are intensifying its weekly leg lower, now dragging the West Texas Intermediate to fresh lows near the $46.00 mark per barrel.

WTI (very) offered after EIA’s report

Prices for the black gold accelerated the decline on Wednesday after the EIA’s report showed US crude oil supplies rose by 3.295 million barrels in the week ended on June 2.

Additional data saw Weekly Distillates Stocks rising by 4.355 million barrels, while Gasoline Inventories went up by 3.324 million barrels.

Further data showed crude supplies at Cushing down by 1.444 million barrels, while US oil production rose to 9.45 million barrels.

Crude oil prices stay under pressure despite rising tensions in the Middle East after Saudi Arabia and other Arab peers cut ties with Qatar, sparking fears of potential supply disruptions.

The barrel of WTI dropped to fresh 4-week lows in the wake of the DoE’s publication, shedding more than 11% since pre-OPEC peaks around the $52.00 mark.

WTI levels to consider

At the moment the barrel of WTI is losing 4.38% at $46.08 facing the immediate down barrier at $45.70 (76.4% Fibo of the May rally) and then $43.76 (2017 low May 5). On the upside, a breakout of $48.40 (high Jun.6) would open the door to $48.85 (38.2% Fibo of the May rally) and then $49.08 (20-day sma).