WTI challenges $48.00 ahead of US data

Crude oil prices are extending its recent downbeat mood, now dragging the West Texas Intermediate to the $48.00 area per barrel, or daily lows.

WTI lower on USD buying

Prices for the barrel of WTI keep the area of session lows near $48.40 following a bid note around the greenback and the first drop in US oil rig count since June, according to the latest report by driller Baker Hughes on Friday.

In addition, crude prices are suffering the lack of any positive outcome from the meeting between OPEC and non-OPEC countries over the weekend in Vienna, fuelling the uncertainties surrounding the potential output freeze and the next OPEC meeting in November.

Data wise, US inflation figures measured by headline PCE (Fed’s preferred gauge) rose at an annualized 1.2%, while Core PCE rose 1.7% on a year to September. Further data saw Personal Income missing estimates, up 0.3% MoM and Personal Spending surprising to the upside, advancing 0.5%.

WTI levels to consider

At the moment the barrel of WTI is retreating 1.12% at $48.12 and a breach of $47.44 (55-day sma) would expose $46.47 (100-day sma) and finally $44.19 (low Sep.27). On the flip side, the next up barrier is located at $51.93 (2016 high Oct.19) followed by $53.89 (high Jul.10 2015) and then $62.58 (high May 6 2015).