- WTI prices lose traction to the upside and fall below $ 41.00.
- The increase in coronavirus cases undermines the outlook for oil demand.
- The EIA’s weekly report on US supplies will be next on the economic agenda.
US Reference Barrel Prices for Light Sweet Crude they remain defensive and revisit the area below $ 41.00 on Wednesday.
WTI now attentive to EIA
The WTI extends the consolidation mood at the upper end of the multi-week range, with gains so far limited near the $ 42.00 per barrel level.
Meanwhile, crude prices remain vigilant and cautious in the face of the advance of the coronavirus pandemic, as well as its impact on oil demand and the prospects for global growth.
Supply-side concerns in the short term include discussions by OPEC + on whether to extend the current oil production cut deal to next year and the resumption of oil export activity in Libya.
On the economic docket, API reported a weekly build of nearly 600,000 in US crude oil supplies late on Tuesday versus an expected drop of nearly 2 million barrels. Later Wednesday, the EIA will release its figures for the last week before Friday’s oil rig count by driller Baker Hughes.
Technical levels
At the moment, the WTI barrel is down 0.10% to $ 40.90 and a breakout of $ 39.07 (Oct. 12 weekly low) would target $ 37.82 (200-day SMA) and then $ 36.66 (Oct. 2 monthly low). On the other hand, the next obstacle is located at $ 41.87 (monthly maximum on October 20), seconded by $ 43.75 (monthly maximum on August 26) and finally $ 48.64 (monthly maximum on March 3).
Credits: Forex Street
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