- WTI prices fall below $ 60.00 again.
- Extremely cold weather affected the oil industry in Texas.
- API and EIA reports arrive on Wednesdays and Thursdays.
WTI prices they are down below $ 60.00 on Tuesday after recently hitting yearly highs.
WTI corrects down from multi-month highs
After breaking above the critical $ 60.00 per barrel level for the first time since January 2020 earlier in the week, West Texas Intermediate prices now trimmed some of those gains and retreat to the zone below $ 60.00 on Tuesday.
The rebound in crude prices comes despite unexpected cold weather in the United States, particularly in Texas, which forced refineries to stop normal activity in the last few hours.
Away from the United States, geopolitical tensions continue to rise after the recent drone attack on Saudi Arabia, while Norwegian oil workers and their union reached an agreement, thus avoiding likely strikes.
Later in the week, the API and EIA will release their report on US crude oil supply on Wednesday and Thursday, respectively, followed by Baker Hughes’ report on US drilling activity on Friday.
What to look for around WTI
US benchmark prices for light sweet crude (finally) were trading at multi-month highs above $ 60.00 a barrel on Monday. Rising inflows into commodity-based ETFs have been underpinning the rally in crude oil alongside the persistent decline in U.S. crude supplies, all in a favorable context for riskier assets alongside the dollar weakness. In addition, strong growth prospects in China add to the acceleration of the launch of the vaccine in Europe / Rest of Asia and translate into growing expectations of a strong rebound in the post-coronavirus pandemic.
Significant levels
Right now, a barrel of WTI is shedding 1.35% at $ 59.36 and a breakout of $ 57.43 (Feb 12 low) would target $ 51.66 (Feb 1 monthly low) and then $ 50.09 (55 day SMA). ). On the upside, the next resistance is at $ 60.92 (February 15, 2021 high), followed by $ 65.62 (January 8, 2020 high) and finally $ 66.58 (April 23, 2019 high).
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