WTI bounces off lows near $37.00/bbl post-EIA

  • Prices of the WTI remain on the defensive albeit off lows.
  • Demand concerns dragged prices to 3-week lows near $37.00.
  • EIA reported an unexpected 4.3 mb build during last week.

Crude oil prices remain well on the defensive although they manage to grab some buying interest near the $37.00 mark per barrel on Wednesday.

WTI focused on demand fears

Prices of the barrel of the WTI have been losing ground in past sessions in response to heightened concerns over the impact of the pandemic on the demand for crude oil as well as on prospects of global growth.

Also weighing down on the West Texas Intermediate (and the rest of the riskier assets), the chances that an extra stimulus package could be approved before the November elections in the US are now closer to zero.

In addition, the EIA reported a 4.3M barrel build during last week, with supplies at Cushing down by around 0.42M barrels and Gasoline inventories shrinking less than expected by nearly 0.9M barrels.

WTI significant levels

At the moment the barrel of WTI is losing 4.00% at $37.39 and a breach of $37.14 (monthly low Oct.28) would expose $36.66 (monthly low Oct.2) and then $36.15 (monthly low Sep.8). On the flip side, the next up barrier is located at $41.87 (monthly high Oct.20) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).

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