WTI looks to find traction below $45.00/bbl

Crude oil prices remain under pressure during the second half of the week, with the barrel of West Texas Intermediate around $44.70.

WTI weaker, in 6-week lows

Prices for the WTI stay on the downside for the fourth consecutive week so far, breaking below the key $45.00 mark per barrel, as scepticism among traders regarding the effectiveness of the recently extended OPEC deal to cut the oil output continues to swell.

Furthermore, prospects of rising US oil production, recent figures showing increasing output in Libya, Nigeria (these countries are not part of the OPEC agreement) and Iraq are all contributing with the selling bias in crude oil.

The barrel of WTI has already shed nearly 15% since tops pre-OPEC meeting on May 25 at the $52.00 mark to today’s earlier lows around $44.30.

Adding insult to injury, Wednesday’s EIA report showed US crude oil supplies dropped by more than 1.6 million barrels, less than traders were expecting.

WTI levels to consider

At the moment the barrel of WTI is up 0.09% at $44.77 with the next hurdle at $45.70 (76.4% Fibo of the May rally) seconded by $46.71 (high Jun.12) and finally $46.91 (61.8% Fibo of the May rally). On the other hand, a drop below $44.38 (low Jun.15) would open the door to $43.76 (2017 low May 5) and then $42.20 (monthly low Nov.14 2016).