- Prices of the WTI turn positive above the $40.00 yardstick.
- The EIA reported a nearly 1M barrel drop WoW on Wednesday.
- Traders’ focus now seem to have shifted to fuel demand.
Prices of the barrel of the West Texas Intermediate trade on a narrow range although they manage to keep business above the key $40.00 mark on Thursday.
WTI cautious amidst demand concerns
WTI prices regain some ground lost following Wednesday’s sharp pullback of almost 3% to the vicinity of $39.70 per barrel, where some decent contention seems to have turned up for the time being.
In the meantime, crude oil prices keep the cautious note well and sound against the backdrop of omnipresent concerns over the impact of the fast-spreading coronavirus pandemic on the oil industry, particularly its demand.
Adding to the persistent demand concerns, the EIA reported on Wednesday an unexpected build in gasoline inventories of nearly 1.9 million barrels (vs. a forecasted 1.8 million barrels drop), which increases worries surrounding fuel demand.
Closing the weekly calendar, driller Baker Hughes will report on its weekly oil rig count on Friday.
WTI significant levels
At the moment the barrel of WTI is up 1.14% at $40.46 and faces the next up barrier at $41.87 (monthly high Oct.20) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3). On the downside, a breach of $39.07 (weekly low Oct.12) would aim for $37.73 (200-day SMA) and then $36.66 (monthly low Oct.2).
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