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  • Prices of the WTI adds to weekly gains above $38.00.
  • Traders remain focused on demand, OPEC+, pandemic.
  • The API reported a 8M barrels drop late on Tuesday.

Prices of the American benchmark for the barrel of sweet light crude oil extend the weekly upside although still below the $39.00 mark.

WTI now looks to EIA, pandemic

Crude oil prices manage to extend the rebound from Monday’s lows in the sub-$34.00 region to the vicinity of the $39.00 mark per barrel. The rebound in prices, however, is expected to be short-lived as it is mainly supported by short covering.

In the meantime, the advance of the pandemic and its impact on the oil industry continues to be the main catalysts for the price action. Adding to these concerns, but on the supply side, Libya’s oil production/exports keep growing after the country left behind the force majeure in many of its ports and oilfields.

On the supportive side of prices, the OPEC+ keeps mulling the idea of postponing its planned output increases (to originally kick in January 2021). In the same line, the API said US crude oil supplies went down by more than 8 million barrels during last week, surpassing estimates.

Later on Wednesday, the EIA will report on US crude oil inventories ahead of Friday’s oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is up 1.40% at $38.66 and faces the next up barrier at $38.86 (monthly high Nov.3) seconded by $40.30 (100-day SMA) and finally $41.87 (monthly high Oct.20). On the other hand, a breach of $33.67 (monthly low Nov.2) would expose $29.11 (monthly high Apr.3) and then $19.29 (monthly low Mar.30).