WTI bouncing off $47.60, supply glut weighs

The barrel of West Texas Intermediate is looking to extend the rebound from earlier lows in the $47.70/65 band, currently trading closer to the $48.00 mark.

WTI lower on supply concerns

Crude oil prices keep receding from last week’s 2016 tops in levels just shy of the $49.00 mark, with concerns over the supply glut re-emerging and driving sentiment lower.

Adding to ongoing jitters, Libya has resumed its exports from one of its main ports while Iran is planning to increase its production during the summer, ruling out for the time being any attempt of freezing its output.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.24% at $47.81 with the initial support at $46.10 (20-day sma) followed by $42.50 (low Apr.26) and then $41.93 (55-day sma). On the other hand, a breakout of $48.95 (2016 high May 18) would aim for $49.33 (high Aug.31 2015) and finally $50.92 (high Oct.9 2015).