WTI plummets to $53.40 on Nigerian headlines

Crude oil prices have intensified their correction lower on Tuesday, now dragging the West Texas Intermediate to daily lows in the $53.40 region per barrel.

WTI weaker despite softer Dollar

The selling pressure around WTI picked up extra pace today after news agency Reuters cited Nigerian sources saying the country is producing 2.1 million barrels per day. It is worth mentioning that OPEC Secretary M.Barkindo said on Monday that the worst days for Nigeria regarding low crude oil prices were over.

Prices for the WTI have failed to advance further north of today’s highs around $54.20, sparking the ongoing leg lower in spite of the persistent softer tone surrounding the greenback.

Looking ahead, WTI should remain under pressure in light of the release of the weekly report on US supplies by the API and President Trump’s speech on SOTU.

WTI levels to consider

At the moment the barrel of WTI is losing 1.18% at $53.41 facing the immediate support at $52.98 (55-day sma) followed by $52.68 (low Feb.16) and then $51.22 (low Feb.8). On the other hand, a surpass of $54.61 (high Feb.27) followed by $54.94 (high Feb.23) and finally $55.24 (2017 high Jan.3).