WTI extends slide to weekly lows near $61 after EIA report


  • EIA shows larger-than-expected build in crude inventories.
  • Trade conflict continues to cloud the demand outlook.
  • OPEC to continue to monitor the market ahead of June meeting. 

Crude oil came under a renewed pressure in the second half of the day after the weekly data published by the U.S. Energy Information Administration revealed a larger-than-expected increase in the crude oil inventories. The barrel of West Texas Intermediate, which rose toward the $64 mark earlier this week, was last seen trading at $61.32, losing 2.65% on a daily basis.

According to the EIA, commercial crude oil inventories in the U.S. rose 4.7 million barrels in the week ending May 17 to miss the market expectation for a draw of 600K barrels. Commenting on the day, "It's at the extreme end of the range of possibilities for a bearish report. It's about as bad as it could have been considering the fact that driving season is so close," Bob Yawger, director of futures at Mizuho in New York, told Reuters.

Meanwhile, Treasury Secretary Mnuchin today told reporters that he didn't have any plans to travel to China for the next round of trade talks yet, suggesting that the trade dispute is unlikely to be resolved anytime soon and reminding investors of its potential negative impact on the oil demand outlook.

Earlier this week, OPEC+ said that it will continue to monitor the markets ahead of the June meeting in Vienna and refrain from making any decision on the output.

Technical levels to consider

WTI

Overview
Today last price 61.32
Today Daily Change -1.67
Today Daily Change % -2.65
Today daily open 62.99
 
Trends
Daily SMA20 62.76
Daily SMA50 62.25
Daily SMA100 58.19
Daily SMA200 60.09
Levels
Previous Daily High 63.79
Previous Daily Low 62.8
Previous Weekly High 63.83
Previous Weekly Low 60.79
Previous Monthly High 66.57
Previous Monthly Low 60.23
Daily Fibonacci 38.2% 63.18
Daily Fibonacci 61.8% 63.41
Daily Pivot Point S1 62.6
Daily Pivot Point S2 62.2
Daily Pivot Point S3 61.61
Daily Pivot Point R1 63.59
Daily Pivot Point R2 64.18
Daily Pivot Point R3 64.58

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD under pressure below 1.1100 as US dollar rebounds

EUR/USD remains under pressure below 1.1100 amid the broad US dollar rebound. US President Trump's decision to extend lockdown to tackle the coronavirus outbreak intensified risks of a deeper economic slowdown and underpinned the haven demand for the greenback. 

EUR/USD News

GBP/USD: Rebound remains capped by 1.2400 amid firmer US dollar

GBP/USD is off the lows but the upside attempts remain capped by 1.2400 amid a broadly stronger US dollar. The dire warnings on the UK’s economic growth amid expectations of a longer lockdown weigh on the spot. 

GBP/USD News

Cryptocurrencies: Bulls try to take the reins again, XRP in front

The XRP/USD pair is best positioned to escape the bearish trap that has gripped the market in recent weeks. Ether needs to do better than BTC, as it has happened over the weekend. Market sentiment is at a negative extreme, an invitation to a short-term upward shift.

Read more

Gold remains confined in a narrow range around $1620 level

Gold extended its sideways consolidative price action and remained confined in a four-day-old trading range through the early European session on Monday. A goodish pickup in the USD demand seemed to be a key factor capping gains.

Gold News

WTI closes in on multi-year lows, trades around $20.50 on demand concerns

The barrel of West Texas Intermediate (WTI) posted losses for the sixth straight time last meek and is now looking to close the month of March more than 50% lower. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures