- Prices of the WTI extends the move lower to sub-$63.00 levels.
- Higher US inventories, stronger dollar weighs on crude prices.
- US Baker Hughes’ oil rig count comes up next on Friday.
Crude oil prices remain under pressure and break below the $63.00 mark per barrel to record fresh weekly lows on Thursday.
WTI looks to data, pandemic
Prices of the American benchmark for the sweet light crude oil trade on the defensive for the fifth consecutive session on Friday, as investors continue to gauge the solid note in the greenback, the unabated pandemic and recent build in US crude oil supplies.
In fact, and as reported by the EIA on Wednesday, US crude oil inventories went up by almost 2.4M barrels during last week and gasoline inventories unexpectedly reversed the previous sharp drop. The report came in contrast with the drop of 1M barrels reported by the API late on Tuesday.
In addition, the slow vaccine rollout in the majority of the world (with the exception of the US, Israel and the UK) coupled with still in place restrictions vs. the relentless advance of the pandemic seems to be weighing on the investors’ perception of the recovery in the economic activity in the wake of the pandemic.
On top, the dollar keeps the buying pressure well and sound and continues to pour cold water over the sentiment surrounding the commodity and the rest of the risk-associated/dollar-denominated universe.
Closing the weekly calendar, driller Baker Hughes will publish its weekly report on US oil rig count on Friday.
WTI significant levels
At the moment the barrel of WTI is down 2.56% at $62.74 and a breach of $59.27 (weekly low Mar.3) would expose $58.60 (low Feb.19) and then $57.43 (low Feb.12). On the upside, the next hurdle is located at $67.94 (2021 high Mar.8) followed by $70.00 (key level) and finally $76.58 (2018 high Oct.3).
Share
