WTI dips to lows around $46.60

Crude oil prices are now accelerating the downside, dragging the West Texas Intermediate to the area of $46.60 per barrel.

WTI lower on USD-buying

Prices for the WTI are navigating fresh 4-week lows and extending the leg lower after being rejected from YTD tops near the $52.00 mar earlier in June.

Persistent concerns on the likeliness of a ‘Brexit’ scenario continue to weigh on the sentiment around the risk-associated space, especially in response to latest poll results, which showed the ‘Leave’ option remains on the lead.

In addition, increasing buying pressure around the buck has prompted investors to quickly shrug off yesterday’s dovish tone from the FOMC and push the US Dollar Index to fresh multi-day peaks.

On top of the above, reports from the API on Tuesday showed US crude stockpiles have increased by more than 1.5 million barrels and yesterday’s EIA report saw crude inventories declining less than expected, all adding to the downbeat mood around crude oil prices.

WTI levels to consider

At the moment the barrel of WTI is retreating 2.69% at $46.72 facing the next support at $45.42 (55-day sma) followed by $43.03 (low May 10) and then $40.40 (200-day sma). On the other hand, a break above $50.21 (previous 2016 high May 26) would aim for $51.67 (2016 high Jun.8) and then $53.85 (high Jul.10 2015).