WTI weaker, challenges $40.00

The downside bias around crude oil prices is now accelerating, taking the barrel of West Texas Intermediate to the boundaries of the critical $40.00 mark.

WTI lower ahead of Doha

Prices for the black gold are trimming part of the gains posted earlier in the week despite the now increasing offered tone surrounding the greenback in the wake of disappointing US results.

WTI is retreating for the third consecutive session so far following increasing speculations on the potential outcome from Sunday’s meeting between OPEC and non-OPEC countries in Doha and the recent effervescence between Iran and Saudi Arabia regarding the likeliness (or not) of an output freeze.

WTI levels to consider

At the moment the barrel of WTI is losing 3.23% at $40.17 and a breach of $39.14 (20-day sma) would open the door to $38.56 (76.4% Fibo of $26.05-$42.41) and then $35.24 (low Apr.5). On the flip side, the immediate hurdle lines up at $42.41 (2016 high Apr.13) would expose $43.46 (high Nov.24 2015) and finally $48.36 (high Nov.3 2015).