- Prices of the WTI remain on the defensive on Wednesday.
- EIA reported an unexpected 7.7M barrel build during last week.
- Saudi Aramco expected to ramp up production to 13m bpd.
Prices of the barrel of West Texas Intermediate keep the selling mood unchanged above the $33.00 mark per barrel in the wake of the EIA’s weekly report.
WTI offered on data, price war
Prices of the American reference for the sweet light crude oil stay deep into the negative territory on Wednesday and are fading further Tuesday’s significant advance after the DoE reported a larger than expected build today.
Indeed, the EIA said crude oil supplies went up by nearly 7.7M barrels during last week, adding to the previous 0.785M barrels build. In addition, Weekly Distillate Stocks shrunk by 6.404M barrels and Gasoline Inventories decreased by more than 5M barrels.
Furthermore, supplies at Cushing rose by around 0.7M barrels, partially reversing last week’s nearly 2M barrels drop.
In the meantime, crude oil prices remain well under pressure amidst the ongoing price war triggered after Russia left the OPEC+ last weekend and Saudi Arabia unilaterally decided to increase its oil output.
Moving forward, driller Baker Hughes will report on the US oil rig count on Friday.
WTI significant levels
At the moment the barrel of WTI is losing 4.51% at $33.20 and a breach of $27.29 (2020 low Mar.9) would expose $26.61 (monthly low Sep.2003) and finally $25.80 (monthly low Apr.2003). On the upside, the next hurdle comes in at $36.28 (high Mar.11) seconded by $40.00 (round level) and then $41.87 (10-day SMA).
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