- Crude oil prices breach the $70 mark/barrel on EIA’s weekly report.
- WTI drops to fresh multi-week lows near $69.80 per barrel.
- US crude oil supplies increased by almost 6.5M barrels last week.
Prices of the barrel of the American reference for the sweet light crude are losing the grip on Wednesday and dropped to fresh lows in sub-$70.00 level.
WTI offered below $70.00/bbl
Prices of the barrel of the West Texas Intermediate accelerated the leg lower today in response to a larger than expected build in US crude oil supplies.
WTI tumbled to fresh lows after the EIA reported US crude oil stockpiles rose by 6.490M barrels during last week, surpassing initial estimates.
In addition, Weekly Distillate Stocks went down by 0.827M barrels and Gasoline inventories shrunk more than forecasted by 2.016M barrels.
Further out, supplies at Cushing rose by 1.766 barrels, adding to last week’s 2.359M barrels build.
Crude oil prices are prolonging the correction lower after the rejection from 4-year tops beyond the $77.00 mark per barrel recorded earlier in the month. Today’s unexpected build plus renewed US-China trade jitters continue to hurt the traders’ sentiment and keep weighing on the commodity.
Later in the week, Baker Hughes will publish its weekly figures for the US drilling activity on Friday.
WTI significant levels
At the moment the barrel of WTI is down 3.13% at $70.01 facing the next support at $69.71 (low Oct.17) seconded by $67.53 (200-day SMA) and then $67.23 (low Sep.7). On the upside, a breakout of $72.94 (10-day SMA) would aim for $73.02 (21-day SMA) and finally $75.41(high Oct.9).
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