- Prices of the WTI approach the $16.00 mark per barrel.
- Despite the rebound on Wednesday, the outlook remains negative.
- The EIA’s weekly report on US crude inventories comes up next.
Volatility remains the name of the game around the American reference for the sweet light crude oil following Monday’s meltdown.
WTI remains offered, looks to data
In fact, prices of the West Texas Intermediate manage to reclaim the $14.00 mark as of writing on Wednesday, clinching at the same time the second consecutive session with gains.
In the meantime, the outlook on crude oil remains unaltered well into the negative side against the backdrop of almost non-existent demand, increasing oversupply concerns and storage capacity nearing maximum levels.
The scenario is therefore expected to get worse before it gets any better, as global economies struggle to re-start the activity amidst the coronavirus pandemic.
Later in the session, the EIA will publish its usual weekly report on US crude oil supplies ahead of Friday’s oil rig count by driller Baker Hughes.
WTI significant levels
WTI significant levelsAt the moment the barrel of WTI is gaining 23.10% at $16.04 facing the next resistance at $21.34 (high Apr.21) seconded by $29.11 (weekly/monthly high Apr.3) and then $34.48 (55-day SMA). On the downside, a breach of $10.35 (low Apr.22) would expose $6.60 (low Apr.21) and finally -$37.63 (all-time low Apr.20).
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