WTI within a narrow range above $40.00 ahead of data
|- Prices of the WTI trade within a tight range on Friday.
- Demand concerns keep weighing on the commodity.
- Baker Hughes’ weekly oil rig count comes up next in the docket.
Crude oil prices extend the weekly leg lower on Friday, although sellers have so far failed to drag prices below the $40.00 mark per barrel.
WTI weaker on demand jitters
Prices of the American reference for the sweet light crude oil retreat for the third consecutive session at the end of the week, always against the backdrop of negative prospects for the demand of the commodity in the current context of the fast-spreading pandemic.
In fact, traders continue to gauge the persistent increase in COVID-19 cases across the globe vs. tighter restriction measures in many countries, all putting extra pressure on the demand for oil and undermining at the same time the economic recovery.
In addition, the IEA revised lower its demand forecast by nearly 9 mbpd for the current year earlier in the week, collaborating with the downbeat mood among traders.
Closing the weekly calendar, driller Baker Hughes will publish its weekly US oil rig count later in the NA session.
WTI significant levels
At the moment the barrel of WTI is losing 0.77% at $40.62 and a breach of $39.54 (55-day SMA) would expose $36.51 (200-day SMA) and then $33.67 (monthly low Nov.2). On the upside, the next hurdle aligns at $43.04 (monthly high Nov.10) followed by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).
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