WTI cuts losses and moves near $ 39.00 / bbl before API

• WTI prices rebound higher and reached the $ 39.00 level.
• Demand and pandemic concerns continue to weigh on oil.
• Below is API’s weekly report on the US crude oil supply.

After two consecutive daily setbacks, West Texas Intermediate prices they recovered some buying interest and reached the $ 39.00 per barrel level on Tuesday.

WTI focused on the next data

WTI’s barrel gained some composure in the first half of the week and at the same time managed to put a two-day negative streak behind it, with the price falling from $ 42.00 (October 20) to Monday’s lows in the area. from $ 38.30.

As is customary in recent weeks, traders remain cautious and vigilant as the coronavirus pandemic progress and its impact on global growth prospects and oil demand.

Supply-side concerns arise after Libya’s oil production / export is expected to return to full capacity after force majeure is removed from major oil fields.

Something mitigating the drop appears to be the likelihood that OPEC + will postpone its planned increase in oil production to early 2021. Nothing has been confirmed yet, but speculation continues to mount.

Later in the session, the API will release its weekly report on US crude inventories ahead of Wednesday’s weekly EIA report.

Technical levels

At the moment, a barrel of WTI has risen 0.65% to $ 38.83 and faces the next ascending barrier at $ 41.87 (October 20 monthly high) seconded by $ 43.75 (August 26 monthly high) and finally $ 48.64 (monthly high March 3). On the other hand, a breakout of $ 38.31 (Oct 26 low) would expose $ 37.44 (200-day SMA) and then $ 36.66 (Oct 2 monthly low).