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  • Prices of the WTI met strong resistance above the $39.00 mark.
  • The EIA reported a nearly 8M barrel drop during last week.
  • Pandemic, demand concerns keep weighing on sentiment.

Crude oil prices trade on the defensive following a failed attempt to extend the recent rally beyond the $39.00 mark per barrel on a more convincing fashion.

WTI stays weak on demand fears

Prices of the barrel of the American reference for the sweet light crude oil recede from weekly lows on the back of persistent jitters regarding the impact of rising coronavirus cases on the demand for the commodity.

The barrel of WTI lost momentum despite both the API and the EIA showed larger-than-expected drops in US crude oil supplies on their weekly reports on Tuesday and Wednesday, respectively.

Earlier in the session, Saudi Arabia decided to cut the oil pricing for its Asian buyers also on the back of demand concerns stemming from the pandemic.

However, prospects of a deeper pullback in crude oil prices appear somewhat contained as the OPEC+ could extend into the next year the current oil output cuts. The cartel is expected to shed more details on this at its next 2-day meeting on November 30.

WTI significant levels

At the moment the barrel of WTI is down 0.14% at $39.07 a breach of $36.83 (200-day SMA) would expose $33.67 (monthly low Nov.2) and then $29.11 (monthly high Apr.3). On the other hand, the next up barrier emerges at $39.23 (monthly high Nov.4) seconded by $40.31 (100-day SMA) and finally $41.87 (monthly high Oct.20).