WTI drops to lows in sub-$48.00 levels

Crude oil prices have started the week on the wrong footing, with the barrel of West Texas Intermediate slipping back to levels below the key $48.00 mark.

WTI lower on firmer USD

After hitting multi-week tops near the $49.00 mark during overnight trade, the barrel of WTI has surrendered those gains and is now shedding nearly 3% to sub-$48.00 levels.

The firmer note around the buck keeps weighing on the USD-denominated assets at the beginning of the week, as speculations on a potential rate hike by the Fed in the medium term keep gathering traction.

Ahead in the week, reports on inventories by API and EIA are expected as usual on Tuesday and Wednesday respectively, while Baker Hughes’s oil-rig count is due on Friday.

WTI levels to consider

At the moment the barrel of WTI is losing 2.69% at $47.80 facing the next support at $45.86 (55-day sma) followed by $41.10 (low Aug.11) and finally $40.46 (200-day sma). On the upside, a breakout of $50.54 (high Jun.22) would open the door to $51.67 (2016 high Jun.9) and then $53.89 (high Jul.10 2015).