WTI falls to 2-week lows near $ 51.50 before EIA

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  • WTI prices fall back below $ 52.00.
  • The dollar’s recovery weighs on crude prices on Friday.
  • Investors await the weekly EIA report for further momentum.

West Texas Intermediate Barrel Prices WTI extend the fall to new multi-day lows in the region of $ 51.50 at the start of the American session on Friday.

WTI weakens ahead of EIA data

Crude oil prices extend the correction from recent highs near the $ 54.00 level, due to better tone around the US dollar and profit taking after strong gains at the beginning of the year.

Another factor driving prices down is the rapid recovery of coronavirus cases around the world, in the midst of a widespread slow vaccination campaign, which is being transforming into stricter lockdown measures and with a direct impact on economic recovery.

On the data side, the EIA will release its weekly report on US crude oil supplies during today’s American session. It is worth remembering that late on Wednesday, the API unexpectedly reported an accumulation of almost 2.6 million barrels during the past week.

What can we expect around WTI?

US benchmark crude prices are correcting from highs near the $ 54.00 level. Past news on Saudi Arabia (unilateral cut in oil production), OPEC + decision to refrain from increasing oil production, and increased US fiscal stimulus already anticipated by investors all contributed to the optimistic climate. around WTI, particularly in the first half of the new year. However, the relentless rise in coronavirus cases amid the launch of the vaccine, coupled with new lockdown measures, mainly in China and Europe, keeps investors somewhat concerned and the prospects for recovery temperate.

Significant levels of WTI

At the time of writing, a barrel of WTI is down 1.55% on the day, trading at $ 52.18. A break of $ 47.20 (January 4 low) would expose $ 46.18 (December 23, 2020 low) ahead of $ 43.94 (December 2, 2020 low). On the upside, the next resistance is at $ 53.90 (January 13 high), followed by $ 54.45 (February 20, 2020 high) and finally $ 59.61 (January 20, 2020 high).

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