WTI tumbles to 2-day lows near $51.00 on glut fears

• Prices of WTI drop to fresh lows in the vicinity of $51.00 today.
• Jitters on potential oversupply in markets weigh on sentiment.
• OPEC, Russia output dropped in the last month of 2018.

Prices of the barrel of West Texas Intermediate are posting moderate losses today and are approaching the $51.00 mark, or new 2-day lows.

WTI hurt by sentiment

WTI is trading on a sour note in the second half of the week despite reports said oil output in OPEC and Russia decreased during December, as per the latest monthly report from the cartel.

However, the re-emergence of concerns over a potential supply glut in the next months has been weighing on traders’ sentiment today, dragging prices lower. In fact, traders are now gauging as insufficient the 1.2 mbpd production cut agreed in November, while fears of a potential global slowdown are also adding to the downbeat mood.

The cartel’s report also noted that the demand for OPEC’s oil will hover around 30.8 mbpd this year, down nearly 0.900 mbpd from 2018.

WTI significant levels

At the moment the barrel of WTI is down 1.94% at $51.28 and a breakdown of $50.87 (10-day SMA) would aim for $50.34 (low Jan.14) and then $48.13 (21-day SMA). On the upside, the initial hurdle lines up at $52.48 (55-day SMA) followed by $53.22 (2019 high Jan.11) and finally $54.48 (high Dec.4).