WTI recovers modestly to mid-$66s after the API report

• OPEC+ is reportedly mulling the option to introduce more supply cuts.
• API says crude inventories in the U.S. rose by 5.7 million barrels.
• IEA’s Birol urges producers to ramp up their output.

Crude oil prices spent the majority of the day under pressure and the barrel of West Texas Intermediate fell  to its lowest level in more than two months at $65.33. However, after Energy Intel reported that  OPEC and non-OPEC producers were monitoring the oil market closely and was mulling  the option to introduce more output cuts in November after the midterm elections in the United States, the WTI staged a modest rebound and erased a portion of its daily losses.  

Later in the day, the weekly report released by the American Petroleum Institue revealed that  crude oil inventories in the United States rose by 5.7 million barrels in the week ended October 26. Although this reading came in slightly above Reuters’ expectation for an increase of 4.1 million barrels, the WTI didn’t show an inverse reaction and was last seen trading at $66.40, losing 25 cents on the day.

Earlier today,  International Energy Agency Executive Director Fatih Birol argued that the oil demand growth was still significant and cutting outputs may not be the right step to take at the current situation to weigh on crude oil prices.

Technical levels to consider

The WTI could face the first  support at $65.30 (daily low) ahead of $64.40 (Aug. 16 low) and $63.60 (Jun. 18 low). On the upside, resistances could be seen at $67.20 (daily high), $68 (Oct 29/26 high) and $69.60 (Oct. 23 high).