WTI challenges 2-day lows in the sub-$72.00 mark

Prices of the WTI gives away further ground and retest the area below the $72.00 mark per barrel on Friday.

WTI now looks to the $74.00 mark

Crude oil prices trade on the defensive as traders cash up part of the recent strong gains and the dollar returns to the area of recent peaks when gauged by the US Dollar Index.

The sharp rally in the West Texas Intermediate, in the meantime, has been fueled by prospects of higher demand in the next year by both the EIA and the IEA in past sessions in combination with supply concerns stemming from the pass of Hurricane Ida.

Collaborating with the upbeat note around the commodity came another strong drop in weekly US crude oil supplies, as per reports by the API and the EIA on Tuesday and Wednesday, respectively.

Later on Friday, driller Baker Hughes will release its weekly report on US oil rig count, closing the weekly calendar.

WTI significant levels

At the moment the barrel of WTI is losing 1.72% at $71.72 and a breach of $69.86 (55-day SMA) would aim for $67.17 (monthly low Sep.1) and then $65.27 (low Aug.9). On the upside, the next hurdle is located at $73.11 (monthly high Sep.15) followed by $ $74.21 (high Jul.30) and $75.47 (high Jul.13).