- WTI prices lose upside traction and drop below $41.00.
- Rising coronavirus cases undermine demand prospects for oil/
- EIA’s weekly report on US supplies coming up next in the docket.
Prices of the barrel of the American benchmark for the sweet light crude oil stay on the defensive and re-visit the area below the $41.00 mark on Wednesday.
WTI now looks to EIA
The WTI extends the consolidative mood in the upper end of the multi-week range, with gains so far capped in the vicinity of the $42.00 mark per barrel.
In the meantime, crude oil prices remain vigilant and cautious on the advance of the coronavirus pandemic as well as its impact on the demand for the crude oil and the prospects of global growth.
Concerns on the supply side in the near-term include OPEC+ discussions on whether to extend the current oil output cut deal into the next year and the resumption of the oil export activity in Libya.
In the docket, the API reported a nearly 600K weekly build in US crude oil supplies late on Tuesday vs. a forecasted drop of almost 2M barrels. Later on Wednesday, the EIA will publish its figures from the last week ahead of Friday’s oil rig count by driller Baker Hughes.
WTI significant levels
At the moment the barrel of WTI is down 0.10% at $40.90 and a breach of $39.07 (weekly low Oct.12) would aim for $37.82 (200-day SMA) and then $36.66 (monthly low Oct.2). On the other hand, the next hurdle is located at $41.87 (monthly high Oct.20) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).
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