WTI trims losses and moves near $39.00/bbl ahead of API
|- Prices of the WTI regain the upside and reach $39.00.
- Demand, pandemic concerns keep weighing on the commodity,
- The API’s weekly report on US crude oil supplies comes up next.
Following two consecutive daily pullbacks, prices of the West Texas Intermediate regain some buying interest and reach the $39.00 mark per barrel on turnaround Tuesday.
WTI focused on upcoming data
The barrel of WTI gain some composure in the first half of the week and at the same time manage to leave behind a 2-say negative streak, with prices coming down from the vicinity of $42.00 (October 20) to Monday’s lows in the $38.30 area.
As usual in past weeks, traders remain cautious and vigilant on the advance of the coronavirus pandemic and its impact on global growth prospects and the demand for the commodity.
Worries on the supply side come after Libya’s oil production/exports is expected to return to full capacity after the force majeure was removed from the main oilfields.
Somewhat mitigating the downside appears the likeliness that the OPEC+ could postpone its planned increase of oil output early in 2021. Nothing confirmed yet, but speculations remain on the rise.
Later in the session, the API will publish its weekly report on US crude oil inventories ahead of the EIA’s weekly report on Wednesday.
WTI significant levels
At the moment the barrel of WTI is up 0.65% at $38.83 and faces the next up barrier at $41.87 (monthly high Oct.20) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3). On the other hand, a breach of $38.31 (low Oct.26) would expose $37.44 (200-day SMA) and then $36.66 (monthly low Oct.2).
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