WTI bounces up from session lows at $39 and returns to $40
- WTI futures bounce up from $39.05 and return to levels near $40.
- Oil prices rise after the EIA reports a larger than expected decline on stocks.
- Crude prices remain capped below $40 after having posted their best quarter in decades.
Front-month WTI futures are picking up following a larger than expected decline of crude oil stocks to return to levels near $40.The West Texas Intermediate, which had dropped about $1.50 to session lows at $39.05, is regaining lost ground, buoyed by the EIA report.
Oil prices bounce up following oil stocks data
The larger than expected decrease in US oil stocks has given a fresh push to WTI futures. The Energy Information Administration (EIA) has reported a 7.2 million decline on US oil stocks on the week of June 26, beating expectations of a 710,000 drop and following a 1.4 million increase over the previous week.
WTI oil prices have remained trading between $37 and $40 during the last three weeks after having surged 91% in the previous two months to close the best quarterly performance since the third quarter of 1990 during the first Gulf War. Market hopes of a quick recovery have been supporting the oil rally, while concerns of a second coronavirus wave remain weighing on commodity prices.
From a technical point of view, WTI futures remain capped below $40.50 (Jun 24 high, Intra-day high) with next resistance areas at $41.61 (Jun. 23 high) and $44.00 (200-day SMA) On the downside, immediate support lies at 38.90 (Jun. 30 low) and below here, 37.00 (Jun. 17, 25 lows) and 34.34 (Jun.15 low).
WTI key levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
