- Prices of the WTI accelerates the downside below $22.00/bbl.
- The recent OPEC+ deal is seen as insufficient to boost prices.
- The API will publish its weekly report on crude supplies.
Prices of the West Texas Intermediate are navigating the area of multi-day lows in the vicinity of the $21.00 mark per barrel on Tuesday.
WTI weaker despite OPEC agreement
Prices of the WTI are down for the third consecutive session on Tuesday, practically ignoring the recently clinched deal between the OPEC, Russia, Saudi Arabia and other oil-producer countries to cut the oil output by nearly 10Mbpd.
In fact, traders continue to deem as insufficient the agreement, as market chatter is already factoring in an oversupply of nearly 30Mbpd. Prices are therefore under extra downside pressure and it would not surprise anybody to see the barrel navigating the teens at some point in the short-term horizon.
Also collaborating with the downside, Saudi Aramco cut further the May selling price for its Asian customers, as the coronavirus outbreak continues to hurt the demand for crude oil.
Later in the session, the weekly report by the API on crude oil inventories is due ahead of the DoE’s official release on Wednesday.
What to look for around WTI
The outlook on crude oil prices remains fragile to say the least and despite the recent agreement between the OPEC and other countries to cut the oil production in the next couple of months. However, scepticism and unease among oil players continue to hurt the sentiment around the commodity, leaving prices exposed to a deeper retracement amidst the absence of the slightest recovery in the demand.
WTI significant levels
At the moment the barrel of WTI is losing 2.67% at $21.77 and a breach of $19.29 (2020 low Mar.30) would expose $17.12 (monthly low November 2001) and finally $10.65 (monthly low December 1998). On the upside, the next resistance emerges at $29.11 (weekly/monthly high Apr.3) followed by $30.22 (23.6% Fibo of the 2020 drop) and then $36.99 (38.2% Fibo of the 2020 drop).
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