WTI capped around $40.00, focus on EIA

Prices for the barrel of West Texas Intermediate are advancing nearly 1% today, although gains appear so far capped around the $40.00 mark.

WTI now looks to EIA

WTI is posting gains for the first time since Friday, breaking below the psychological support at $40.00 the figure and trying to consolidate in the current area of 4-month lows for the time being.

Today’s upside in crude oil prices is deriving support from yesterday’s positive API report, showing US crude supplies have decreased by 1.3 million barrels in the last week.

While lingering concerns over the supply glut are still weighing on sentiment, traders will look for another drop in crude inventories in order to add to today’s gains, this time from the EIA’s weekly report expected later in the NA session.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.89% at $39.86 and a break above $43.62 (20-day sma) would open the door to $44.88 (100-day sma) and then $46.93 (high Jul.12). On the flip side, the immediate support lines up at $39.26 (low Aug.2) followed by $37.61 (low Apr.18) and finally $35.24 (low Apr.5).