- Prices of the WTI met sellers above the $46.00 mark.
- Demand concerns re-emerge and weigh on sentiment.
- The EIA reported US crude supplies dropped by 0.754M last week.
After hitting fresh 8-month peaks above the $46.00 mark, prices of the barrel of WTI ease some ground on the back of profit taking and the resumptions of demand concerns on Thursday.
WTI meets resistance just beyond $46.00
Prices of the barrel of West Texas Intermediate retreat for the first time after six daily advances in a row.
In fact, the knee-jerk in prices follow some profit taking in light of the strong monthly gains, while jitters resurfaced regarding crude oil demand amidst the unabated advance of the pandemic.
Earlier in the week, the EIA reported a drop of around 750K barrels in US crude oil supplies during last week, in line with the decrease in oil inventories reported late on Tuesday by the API. Further data from driller Baker Hughes showed US oil rig count went up by 10 during last week to 241 active oil rigs.
Despite the ongoing correction, the WTI closed with gains in every week of the current month, gaining around 37% since lows in the sub-$34.00 area on November 1.
WTI significant levels
At the moment the barrel of WTI is down 1.30% at $45.26 and a breach of $43.04 (high Nov.11) would aim to $40.12 (weekly low Nov.16) and then $37.09 (low Nov.6). On the other hand, the next hurdle aligns at $46.24 (monthly high Nov.25) seconded $48.39 (monthly high Mar.4) and finally $54.45 (monthly high Feb.20).