- Prices of the WTI move higher and face resistance around $40.50.
- Weaker dollar pushes crude oil prices higher on Monday.
- API, EIA weekly reports next in the calendar later in the week.
After printing fresh tops near $40.50 per barrel on Monday, prices of the West Texas Intermediate are now facing some selling pressure although they manage well to keep daily gains and business above the $40.00 mark.
WTI looks to COVID-19, dollar
Despite Monday’s gains, crude oil prices remain entrenched within a rangebound pattern and always around the ley $40.00 mark per barrel.
In the meantime, and in spite of the current positive performance in crude oil prices, demand concerns among traders stay well unabated and are forecasted to keep growing in tandem with the unremitting advance of the coronavirus pandemic, particularly in Europe and the US.
Also supporting prices on Monday, the better tone in the risk complex keeps the dollar under pressure and drags the US Dollar Index (DXY) to fresh 3-day lows, trimming part of the recent rally.
Later in the week, the usual reports on crude oil inventories by the API (Tuesday) and the EIA (Wednesday) will take centre stage ahead of Friday’s US oil rig count by driller Baker Hughes. Additional noteworthy data will be another estimate of the US Q2 GDP.
WTI significant levels
At the moment the barrel of WTI is gaining 0.84% at $40.43 and faces the next hurdle at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3). On the downside, a breach of $38.67 (weekly low Sep.21) would aim for $39.00 (100-day SMA) and then $36.15 (monthly low Sep.8).
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