WTI deflates from highs, back below $50.00

Crude oil prices are now giving away part of their earlier gains, with the barrel of West Texas Intermediate returning to the area below the $50.00 handle.

WTI in fresh 2016 highs 

The softer tone in the greenback has helped the barrel of WTI to clinch fresh YTD highs above the psychological $50.00 mark, levels last seen in October 2015.

Prices for the black gold are thus extending the upside for the third month in a row after bottoming out in the boundaries of the $26.00 handle in February.

A drop in US crude inventories by more than 4.2 million barrels has also sustained the upbeat tone in WTI during this week, according to the last report by the EIA (Wednesday).

WTI levels to consider

At the moment the barrel of WTI is advancing 0.22% at $49.67 with the initial hurdle at $50.21 (2016 high May 26) followed by $50.92 (high Oct.9 2015) and finally $53.85 (high Jul.10 2015). On the flip side, a breach of $46.52 (20-day sma) would allow a visit to $42.50 (low Apr.26) and then $42.38 (55-day sma).