WTI flirting with session lows near $48.60

Crude oil prices are trading on the defensive so far today, with the barrel of West Texas Intermediate navigating the area of daily lows in the $48.60/50 band.

WTI weaker on Chinese concerns

The barrel of the American reference for the sweet light crude oil is accelerating the recent breakdown of the $49.00 mark following concerns of a potential slowdown in the Chinese demand for crude, all according the latest report on Chinese refining activity.

In addition, driller Baker Hughes reported on Friday that US oil rig count increased by 5 in the week ended on August 4, re-igniting concerns over prospects of higher US oil production and weighing on hopes of lower US crude supplies in the next periods.

Looking ahead, the usual weekly report on US crude oil inventories by the API and the EIA are due on Tuesday and Wednesday, respectively.

WTI levels to consider

At the moment the barrel of WTI is losing 0.68% at $48.49 and a break below $47.98 (low Aug.11) would aim for $47.23 (38.2% Fibo of the June-August up move) and finally $46.62 (55-day sma). On the other hand, the next hurdle emerges at $49.52 (200-day sma) seconded by $50.43 (high Aug.1) and then $52.00 (high May 25).