WTI weaker, challenges $49.00

Crude oil prices are shedding part of yesterday’s advance, prompting the barrel of West Texas Intermediate to test the key support at the $49.00 mark.

WTI lower on USD buying

A bout of buying interest around the greenback is now hitting the risk-associated assets, sending WTI to the boundaries of $49.00 ahead of Yellen’s testimony before the Senate.

Risk aversion sentiment seems to be attempting a comeback after fresh Brexit poll from IG Survation showed the ‘Remain’ vote remains on the lead at 45% vs. 44% of the ‘Stay’ option, pouring cold water over global hopes of the UK staying part of the EU.

WTI is thus snapping a 2-session positive streak so far, ahead of key inventories reports from the API and EIA due later today and tomorrow, respectively.

WTI levels to consider

At the moment the barrel of WTI is down 1.98% at $48.97 facing the next support at $46.31 (55-day sma) ahead of $45.83 (low Jun.17) and finally $43.03 (low May 10). On the flip side, a break above $50.21 (previous 2016 high May 26) would open the door to $51.67 (2016 high Jun.8) and then $53.85 (high Jul.10 2015).