WTI clings to $66.00 post-EIA report

  • Crude oil prices remain on the defensive around the $66.00 mark.
  • WTI trades just above 2-month lows at $65.30 seen on Tuesday.
  • US crude oil supplies increased by around 3.2M barrels last week.

Prices of the barrel of the American reference for the sweet light crude oil are extending the downtrend and gyrating around the $66.00 mark.

WTI offered around $66.00/bbl

Prices of the barrel of the West Texas Intermediate are down for the third session in a row following the publication of the DoE’s report, although they have managed to bounce off recent 2-month lows in the $65.30 area (Tuesday).

The EIA’s report failed to lift the mood around WTI after US crude oil inventories rose by 3.217M barrels during last week.

In addition, Weekly Distillate Stocks dropped by 4.054M barrels and Gasoline inventories went down more than forecasted by 3.161M barrels.

Further out, supplies at Cushing rose by 1.878M barrels, adding to last week’s 1.371M barrels increase.

Prices of crude oil remain under pressure so far today, shedding more than 15% in October only, falling from multi-year tops beyond the $77.00 mark per barrel seen earlier in the month to yesterday’s low in the $65.30 region.

Concerns over the US-China trade dispute, prospects of lower demand for crude oil in the next months and renewed jitters regarding potential oversupply in the markets have been weighing on traders’ sentiment as of late. Also keeping the pressure on prices, a survey by Reuters said that the OPEC increased its production this month to the highest level since 2016.

News from the speculative community showed that oil net long positions dropped to the lowest level since late October 2017 during the week ended on October 23, as per the latest CFTC report.

Moving forward, driller Baker Hughes will release its weekly report on US oil rig count on Friday.

WTI significant levels

At the moment the barrel of WTI is down 0.32% at $66.06 and a breakdown of $65.32 (low Oct.30) would expose $64.69 (low Aug.16) and then $63.59 (low Jun.18). On the upside, the next resistance lines up at $67.34 (10-day SMA) followed by $67.70 (200-day SMA) and finally $70.00 (high Oct.18).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovering above 1.1050 amid trade concerns, ahead of ECB minutes

EUR/USD is trading above 1.1050, at familiar levels. Doubts that a US-Sino trade deal may be reached are weighing on markets. The Fed's minutes have reaffirmed the wait-and-see mode, and the ECB's minutes are awaited. 


GBP/USD advances above 1.29 as Conservatives remain in the lead

GBP/USD is rising above 1.29 as fresh opinion polls continue showing a solid lead for Prime Minister Boris Johnson's Conservatives. Further political headlines are awaited.


USD/JPY bounces-off 50-DMA but lacks follow-through

USD/JPY has bounced up from the 50-day MA support of 108.28. China's Vice Premier Liu He is cautiously optimistic about the prospects of the US-China trade deal. Related markets, however, are not buying Liu He's optimism, keeping the recovery in check. 


Gold flirting with session lows, around $1470 region

Gold edged lower through the Asian session on Thursday and is currently placed near the lower end of its daily trading range, around the $1470 region.

Gold News

Hong Kong now a feature in trade negotiations?

The US Senate and House have both passed the Hong Kong Human Rights and Democracy Bill, so now it heads to the desk of US President Trump to either sign or veto it. Sources suggest that the President will sign it into law.

Read more