- 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price is defending support at $1.80 as multiple technical indicators flash bearish. 21.67 million MANTA tokens worth $44 million are due to flood markets in a cliff unlock on Thursday.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.