WTI: Bears eyeing $19 mark amid oversupply concerns, ahead of EIA report
- WTI risks further falls amid heightening oversupply concerns.
- Broad US dollar demand exacerbates the pain in oil.
- All eyes remain on EIA data and coronavirus updates.
Having faced rejection once again near 20.80 region, WTI (oil futures on NYMEX) resumes its recent bearish trend, as the bears now look to test the 17-year low of 19.27 reached earlier this week. At the time of writing, the black gold trades at 20.25, down 1.30% on a daily basis.
The sentiment around the black gold remains undermined on renewed oversupply concerns, amid rising OPEC oil output as well as US crude stockpiles. According to a Reuters survey released on Tuesday, the crude oil output of the OPEC increased by 90,000 barrels per day (bpd) in March to 27.93 million bpd.
Meanwhile, the American Petroleum Institute’s (API) data showed that the US crude inventories rose by 10.5 million barrels last week, way above the expectations for a 4 million barrel build-up.
Adding to the downtrend, an industry official noted that the Saudi Arabian oil giant Aramco’s ramped up its oil output to above 12 million barrel per day (bpd). The mounting concerns of a supply overhang overshadowed the upbeat remarks from a Russian official, who stated that they are not planning to boost oil output.
The prices also remain pressured by the Reuters report that top US officials have for now put aside a proposal for an alliance with Saudi Arabia to stabilize the oil market.
Attention now turns towards the USD price-action and Crude Stocks data due to be published by the Energy Information Administration (EIA) for the near-term trading opportunities in oil.
WTI technical levels to consider
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
