Crude oil prices are weakening further during the second half of the week, with the barrel of West Texas Intermediate hovering over the mid-$48.00s.
WTI in fresh 4-week lows
Prices for the barrel of the American benchmark of the sweet light crude oil are navigating fresh multi-week lows in the $48.50 region as supply glut concerns have returned to the markets and keep dragging on sentiment.
Adding to crude oil weakness, traders remain sceptical on the effect on prices of the current OPEC/non-OPEC output cut deal amidst increasing speculation on the probability that the agreement could be extended beyond June.
Rising US oil production is also collaborating with the downbeat sentiment, as shown by increasing US active oil rigs reflected in the weekly report of driller Baker Hughes.
Earlier in the European morning, Nigerian sources said the Sharara oilfield should be re-opening soon.
WTI levels to consider
At the moment the barrel of WTI is losing 1.95% at $48.65 facing the next support at $48.45 (78.6% Fibo of the March-April rally) followed by $47.01 (2017 low Mar.22) and then $44.82 (low Nov.22 2016). On the other hand, a break above $49.12 (200-day sma) would aim for $49.59 (61.8% Fibo of the March-April rally) and finally $50.20 (high Apr.26).