WTI down smalls around $48.60

Crude oil prices are drifting lower at the beginning of the week, taking the barrel of West Texas Intermediate to the mid-$48.00s for the time being.

WTI gains capped near $48.80

Prices of the barrel of the American benchmark for the sweet light crude oil are a tad lower on Monday following Friday’s strong gains of nearly 3% and finding quite strong resistance in the vicinity of $48.80, where sits the 21-day sma.

It is worth mentioning that prices of WTI were boosted on Friday following news that a refinery property of Exxon Mobil was shut down (the second largest refinery in the US).

In addition, the upside in crude oil prices has been bolstered at the end of the week after driller Baker Hughes reported on Friday that US oil rig count decreased by 5 during the week ended on August 18, taking US active oil rigs to 763.

WTI levels to consider

At the moment the barrel of WTI is losing 0.08% at $48.62 and a break below $47.93 (100-day sma) would open the door to $47.23 (38.2% Fibo of the June-August up move) and then $46.46 (low Aug.17). On the other hand, the next up barrier emerges at  $48.74 (high Aug.18) followed by $49.59 (200-day sma) and finally $50.22 (high Aug.10).