WTI drops below $51.00

FXStreet (Edinburgh) - The barrel of the American benchmark for the light crude oil is retreating more than 1.5% on Thursday, putting the $50.50 area to the test.

WTI focus on US Payrolls

After climbing as high as the proximity of $52.00, the WTI initiated a leg lower to the current area around $55.60, amidst a scenario of a strong US dollar. Geopolitical concerns stemming from Libya plus comments from Saudi Arabia’s officials in early trade gave crude oil extra support, although the impetus faded afterwards.

The barrel of WTI managed to leave behind the weekly report on crude oil inventories published by the EIA on Wednesday, showing an increase of over 10 million/barrels in the week ended on February 27.

Ahead in the week, the next risk event for WTI will be February’s Non-farm Payrolls in the US economy, due tomorrow (240K exp.).

WTI key levels

The barrel of WTI is now retreating 1.57% at $50.72 with the immediate support at $50.64 (low Mar.5) followed by $49.45 (low Mar.4) and finally $48.71 (low Mar.2). On the upside, a breakout of $52.39 (high Mar.5) would open the door to $52.72 (high Feb.19) and then $54.32 (high Feb.17).

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