- Prices of the WTI moves within the usual range around $40.00.
- Next important resistance emerges around $41.50, monthly tops.
- The API’s weekly report on crude oil supplies comes up next.
Prices of the barrel of WTI extend the consolidative mood for yet another session on Tuesday, always around the key $40.00 level.
WTI looks to pandemic, data
There are no new developments in the crude oil universe, as traders remain vigilant on the advance of the second wave of the coronavirus pandemic and its impact on the global growth prospects.
The barrel of the West Texas Intermediate remains side-lined and posts marginal gains on Tuesday following three pullbacks in a row and despite the publication of recent Chinese Q3 GDP figures, which showed the economic recovery keeps the firm pace so far.
In addition, and somewhat bolstering crude oil prices, OPEC Secretary M.Barkindo recently said that the cartel will do its best to prevent another plunge in prices from happening again.
However, the prospects for oil demand remain fragile at best, always amidst the fast spreading pandemic and rising concerns over the economic recovery.
Later in the NA session, the API will report on the weekly variation of crude oil supplies (-5.422 mb prev.) ahead of the EIA’s report on Wednesday and Baker Hughes’ weekly report on the US drilling activity on Friday.
WTI significant levels
At the moment the barrel of WTI is down 0.28% at $40.58 and a breach of $39.07 (weekly low Oct.12) would aim for $37.91 (200-day SMA) and then $36.66 (monthly low Oct.2). On the other hand, the next hurdle is located at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).
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