WTI retreats from yearly highs near $ 54.00 level before EIA

• WTI prices are under pressure and fall below the $ 53.00 level.
• The API reported a 5.8 million barrel drop late on Tuesday.
• The EIA’s weekly report on crude supplies will be released later.

The 2021 spike in crude oil prices remains strong, with WTI prices reaching new highs near the region of $ 54.00 per barrel on Wednesday. At the time of writing, WTI prices are returning their initial gains and are largely unchanged on the day around the $ 53.10 level.

WTI focuses on EIA data and the evolution of the pandemic

West Texas Intermediate prices are under some selling pressure after briefly hitting new highs near the $ 54.00 per barrel level on Wednesday, area last seen in February 2020.

The initial rise in crude oil prices has been sustained by a larger-than-expected drop in crude supplies from the United States., as reported by the API late Tuesday. The upbeat data adds to recent news of Saudi Arabia’s unilateral cut in production over the next few months.

However, the more rapid advance of the coronavirus pandemic, particularly in China, appears to have hit the oil bulls and caused the current intraday correction of prices.

As for the data, the EIA will release its regular report on weekly US crude oil supplies later in the American session.

Significant levels of WTI

At the time of writing, a barrel of WTI is shedding 0.38% on the day, trading at $ 53.07. A break of $ 47.20 (January 4 low) would expose $ 46.18 (December 23, 2020 low) ahead of $ 43.94 (December 2, 2020 low). On the positive side, the next barrier is at $ 53.90 (January 13 high), followed by $ 54.45 (February 20 high) and finally $ 59.61 (January 20 high).