WTI down smalls, testing lows near $67.50

• Prices of the WTI area heading lower to the mid-$67.00s so far.
• Recent builds in supplies reported by API, EIA weigh on oil.
• Baker Hughes’ US oil rig count next on tap on Friday.

Prices of the barrel of the WTI are extending the consolidative theme so far this week and are now meandering the lower end of the daily range near $67.50.

WTI weaker on stockpiles build

The barrel of the West Texas Intermediate is down smalls on Thursday, as traders remain wary of the recent reports by the API (Tuesday) and the EIA (Wednesday), showing an important uptick in US crude oil supplies during last week, along with another record high in US oil production.

On another direction, and somewhat limiting the downside, investors remain vigilant on the likelihood of further US sanctions against Iran. It is worth mentioning that President Trump should make a decision on the subject by May 12.

Also supportive of oil prices, the IMF announced yesterday it could expel Venezuela for failing to provide economic data. It is worth recalling that Venezuela’s oil production shrunk to 1.6 mbpd in January 2016 (vs. 2.3 mbpd a year ago).

In addition, speculations continue to grow bigger regarding the likeliness that the OPEC+ agreement to cut the oil output could be extended beyond its original deadline around end of this year, which could also be supportive of prices.

WTI significant levels

At the moment the barrel of WTI is down 0.31% at $67.48 facing the next support at $66.91 (21-day sma) followed by $66.88 (low May 2) and finally $65.56 (low Apr.17). On the other hand, a break above $69.55 (2018 high Apr.19) would open the door to $69.66 (monthly high Dec.2014) and finally $70.00 (psychological level).