WTI trades below $48 ahead of API report

Crude oil prices came in under a renewed selling pressure at the early trading hours of the NA session and dragged the barrel of WTI to a new monthly low at $47.50. As of writing, the barrel of WTI was losing 2.5% on the day, trading at $47.60.

Although crude oil prices started the day in a positive manner amid heightened expectations of an extension to OPEC output cut deal, they quickly reversed course in the second half of the day as a recent survey by Bloomberg suggested that the Energy Information Administration's stock report on Wednesday would show an increase in gasoline and distillate fuel inventories despite an expected decline in crude oil stocks. Regardless of OPEC's efforts to balance the oil market, rising shale production in the U.S. cap the gains by introducing more supply into the market.

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the Ahead of tomorrow's EIA report, American Petroleum Institute will release its supply data in about two hours and this recent survey could have ramped up the expectations of an increase in API figures as well, weighing on crude oil prices. Last week's data showed that the stocks rose by 0.897M. 

Technical levels

The initial support for the barrel of WTI could be seen at $47 (Mar. 22 low/psychological level) ahead of $45.90 (Nov. 25 low) and $45 (psychological level). On the flip side, with a break below $48 (psychological level), the correction could extend towards $49.30 (daily high) and $49.75 (Apr. 28 high).