WTI supported ariund the 50 hourly sma at $47.77

WTI made a double top on yet another failure this month to settle above $50 this month.

US Dollar weaker, holding onto 93.00

WTI dropped from $48.80 resistance to $47.63 in a move that was possibly exaggerated by further book squaring ahead of Tuesday’s September futures contract expiration.

The move in oil comes as producers meet to discuss abating compliance with the OPEC output-cut agreement ahead of the U.S. inventory data due later this week. 

Higher output from Iran, Equatorial Guinea, Gabon, Algeria and the United Arab Emirates is concerning while investors await to see whether weekly U.S. data on Wednesday will confirm a further drawdown in U.S. crude stocks, possibly down to seasonal factors and the US driving season and the risks there is that inventories could start to increase again. 

WTI levels

At the moment the barrel of WTI is losing 1.69% at $47.80 where price meets the 50 hourly sma at $47.77 offering support. A break below there could aim for $47.23 (38.2% Fibo of the June-August up move) and finally $46.65 (50-day sma). To the upside, $48.89 guards 49.80 and  $50.43 (high Aug.1) ahead of $52.00 (high May 25).