WTI headed for a test of the key $47.80 level?

WTI is currently trading at 47.95 having printed a high of 49.29 and a low of 47.87.

WTI is starting to finally stablise under the $48 handle after falling from $49.29 the high.  Investors continue to focus on the recent data from the Organization of the Petroleum Exporting Countries and the International Energy Agency that oil production had risen to reach around 33 million barrels a day for the month of July. The increase in supply has been put down to countries such as Libya, Nigeria and Saudi Arabia who had recently ramped up output which is seriously putting OPEC’s efforts to cut production are being wasted in jeopardy. 

Inflation expectations mostly steady - NY Fed - Survey of Consumer Expectations

At the same time, casting minds back to last week's data in the Baker Hughes information, this showed the number of active U.S. rigs drilling had increased for the week after a decline of one the previous week. The DXY is higher at the start of the week in the US session despite the disappointment in last week's closing session's CPI data from the US that is likely to keep expectations for a Fed hike at bay and this too is impacting commodities. In terms of levels, WTI is embarking on a key level of support at $47.70 and 447.40. $47.80 is the 7th May high and equally psychological. To the upside, the key level is a core through $50.0 and $50.50.