WTI drops to 2-week lows near $37.50, looks to data

Prices of the WTI grinds lower to the $37.20 region.
Sentiment remains sour after Trump tested for coronavirus.
US Nonfarm Payrolls coming up next in the docket.

Pablo Piovano FXStreet

Prices of the barrel of the WTI dropped further at the end of the week and printed fresh 2-week lows in the $37.20 zone.

WTI looks to data, sentiment

Prices of the barrel of the American reference for the sweet light crude oil prolonged the correction lower on Friday after President Trump tested positive for coronavirus following Tuesday’s presidential debate.

In the meantime, demand fears continue to keep crude oil prices depressed so far this week despite inventories in the US continue to shrink, as per recent weekly reports from the API (Tuesday) and the EIA (Wednesday).

Later in the session, US Nonfarm Payrolls for the month of September will be in the limelight along with the U-Mich index. In the crude oil space, driller Baker Hughes will release its weekly oil rig count.

WTI significant levels

At the moment the barrel of WTI is losing 2.63% at $37.52 and a breach of $36.15 (monthly low Sep.8) would expose $34.38 (low Jun.15) and then $31.16 (low May 28). On the other hand, the next up barrier aligns at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).

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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