WTI challenges $65.00 on EIA report

Crude oil prices drop to the $65.00 area on EIA build.
WTI extends the leg lower and approaches the $65.00 mark/bbl.
US crude oil supplies rose by around 6.85 mbpd last week.

Pablo Piovano FXStreet

Prices of the barrel of the American reference for the sweet light crude oil remain on the defensive during the first half of the week, dropping to fresh lows in the $65.00 neighbourhood following the EIA weekly report.

WTI in multi-week lows post-EIA

Prices of the barrel of the West Texas Intermediate are trading on a weak note today after the EIA reported US crude oil inventories increased by 6.805 mbpd during the week ended on August 10 vs. a forecasted 2.5 mbpd drop.

Furthermore, Weekly Distillate Stocks rose by 3.566 mbpd and Gasoline inventories dropped by 0.740 mbpd, bettering prior surveys.

In addition, inventories at Cushing went up by 1.643 mbpd, reverting last week’s 0.590 mbpd drop.

Crude oil prices are losing ground for the third session in a row so far today, dropping to new multi-week lows and extending the rejection from 2018 tops in the $75.35/40 band seen in July.

Later in the week, Baker Hughes will publish its weekly report on the US drilling activity.

WTI significant levels

At the moment the barrel of WTI is losing 2.72% at $65.10 facing the next down barrier at $64.65 (200-day SMA) followed by $63.59 (low Jun.18) and then $61.77 (low Apr.6). On the other hand, a breakout of $68.11 (10-day SMA) could aim for $68.96 (21-day SMA) and finally $70.56 (high Aug.6).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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