WTI tumbles to 2-day lows near $39.40 ahead of EIA
|- Prices of the WTI slipped back below the $40.00 mark.
- The API reported an unexpected 5,,4 million drop on Wednesday.
- The EIA’s weekly report comes up next in the docket.
Crude oil prices erase the recent advance to tops beyond the $41.00 mark per barrel and drop to 2-day lows in the $39.40 region on Thursday.
WTI looks offered ahead of EIA’s report
Following two consecutive daily gains, prices of the American reference for the barrel of the sweet light crude oil trade on a soft note on Thursday despite the API reported an unexpected 5.4 million barrel draw late on Wednesday. The significant drop in supplies, however, is deemed as short-lived as it was a direct consequence of the pass of the Hurricane Delta, according to oil analysts.
In the meantime, the rapid spread of the coronavirus pandemic in the Old Continent coupled with countries implementing new restriction measures brought in renewed demand concerns, hence the downside pressure on prices.
Moving forward, the EIA will report on US crude oil stockpiles later in the NA session, while driller Baker Hughes will publish its weekly oil rig count on Friday.
WTI significant levels
At the moment the barrel of WTI is down 3.98% at $39.43 and a breach of $39.07 (weekly low Oct.12) would aim for $38.17 (200-day SMA) and then $36.66 (monthly low Oct.2). On the upside, the next hurdle is located at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.