- WTI prices remain on the defensive, although far from lows.
- Demand concerns dragged prices to 3-week lows near $ 37.00.
- EIA reported an unexpected build of 4.3 million barrels during the past week.
Crude oil prices they remain defensive, although they managed to capture some buying interest near $ 37.00 a barrel on Wednesday.
WTI focused on demand fears
WTI barrel prices have been losing ground in recent sessions in response to growing concerns about the impact of the pandemic on crude oil demand, as well as global growth prospects.
Also weighing on West Texas Intermediate (and the rest of the riskier assets), the chances of an additional stimulus package being approved before the November US elections are now closer to zero.
Additionally, the EIA reported a build-up of 4.3 million barrels over the past week, with supplies falling about 0.42 million barrels and gasoline inventories declining less than expected by nearly 0.9 million barrels.
Technical levels
Right now, a barrel of WTI is shedding 4.00% to $ 37.39 and a breakout of $ 37.14 (October 28 monthly low) would expose $ 36.66 (October 2 monthly low) and then $ 36.15 (September 8 monthly low). On the other hand, the next barrier is located at $ 41.87 (monthly maximum of October 20), seconded by $ 43.75 (monthly maximum of August 26) and finally $ 48.64 (monthly maximum of March 3).
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Credits: Forex Street
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