WTI tumbles nearly 3% below $49.00

Crude oil prices are extending the weekly drop on Thursday, dragging the barrel of the West Texas Intermediate to fresh lows in sub-$49.00 levels.

WTI weaker on supply glut concerns

Prices for the black gold have quickly plummeted to fresh troughs below the critical $50.00 mark today, posting at the same time fresh YTD lows and trading at levels last seen in December 2016 below the $49.00 handle.

WTI has gathered extra downside pressure after the EIA reported on Wednesday that US crude oil inventories rose by more than 8.2 million barrels during last week, sending total supplies to a all-time record of nearly 530 million barrels.

Crude prices remain under heavy pressure as traders continue to ponder the prospects of rising US production vs. the output cuts following the OPEC/non-OPEC agreement clinched late in 2016.

In addition, the bid tone around the buck continues to cap occasional bullish attempts in the USD-denominated space, all amidst increasing bets on a rate hike by the Federal Reserve on March 15.

WTI levels to consider

At the moment the barrel of WTI is retreating 2.67% at $48.90 and a breach of $48.73 (200-day sma) would expose $44.82 (low Nov.29 2016). On the upside, the next resistance lines up at $50.97 (100-day sma) followed by $53.01 (55-day sma) and finally $53.80 (high Mar.7).