WTI clinches daily highs near $39.50 ahead of EIA

Prices of the WTI move higher to the mid-$39.00s.
Crude oil demand remains under pressure on pandemic fears.
US EIA’s weekly report on crude oil supplies comes up next.

Pablo Piovano FXStreet

Prices of the barrel of the American benchmark for the sweet light crude oil are partially fading Tuesday’s pullback and manage to regain the $39.50 region ahead of key supply data.

WTI looks to data, pandemic

Prices of the West Texas Intermediate regain upside traction following Tuesday’s sharp pullback to multi-day lows in the $38.40 region per barrel.

The positive price action in crude oil prices appear bolstered after better-than-expected results from the US docket, where both Q2 GDP figures and the ADP gauge came in above expectations.

The better mood in crude oil came despite the resumption of the buying bias in the greenback and the persistence of the risk aversion.

Indeed, and despite the uptick, traders remain worried amidst the unabated advance of the coronavirus pandemic and its impact on the growth outlook and ultimately on the demand for crude oil.

Late on Tuesday, the API reported an 831K drop in US crude oil inventories during the week ended on September 25. Coming up next, the EIA will publish its official report on crude oil supplies.

WTI significant levels

At the moment the barrel of WTI is up 0.62% at $39.37 and faces the next hurdle at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3). On the other hand, a breach of $38.44 (weekly low Sep.29) would aim for $36.15 (monthly low Sep.8) and then $31.16 (low May 28).

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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