WTI slid to its lowest since late November at $46.40

Oil prices continued to fall as the American traders hit their desks on Thursday, dragging the barrel of West Texas Intermediate to its lowest level since November 30 at $46.40. As of writing, the barrel of WTI was trading at $46.65, losing 2.5%, or 1.2$, on the day.

Yesterday's official data showed that the crude oil stocks in the U.S. fell less than expected and re-fueled the concerns over the global supply glut, which have been weighing on crude oil prices since OPEC announced its first supply cut in eight years. The markets are likely to continue to assess the impact of the rising shale production in the U.S. against the agreed output cuts.

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The next data of importance for the WTI will come tomorrow when the Baker Hughes Inc. releases the total number of active oil rigs. Until then, any correction attempts are bound to remain shallow and technical unless a fundamental development supports them.

Technical outlook

With a break below $45.90 (Nov. 25 low), the price for the barrel of WTI could drop further to $45 (psychological level) and $44.25 (Nov. 10 low). To the upside, resistances align at $47.75 (daily high), $48.25 (May 3 high) and $49 (psychological level).

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