WTI loses the grip and recedes to $41.00 ahead of EIA

WTI prices tick lower and return to the $41.00 area.
IEA said global oil demand forecast to shrink by nearly 9 mbpd.
EIA’s report on US crude oil supplies next on tap later in the NA session.

Pablo Piovano FXStreet

Crude oil prices recede further from Wednesday’s 2-month peaks just above the key $43.00 mark per barrel.

WTI looks offered ahead of EIA

Prices of the barrel of the West Texas Intermediate retreat for the second consecutive session on Thursday after failing to advance further north of the $43.00 level on a more sustainable fashion on Wednesday.

The re-emergence of demand concerns amidst the relentless progress of the pandemic and its impact on the economic rebound have returned to the markets and prompt the commodity to drop to 2-day lows in the $41.00 zone so far, all eclipsing the rising optimism in the wake of the recent news about Pfizer (NYSE: PFE) and its vaccine.

In addition, the IEA now sees global oil demand dropping by nearly 9 mbpd this year, while supply could increase by more than 1 mbpd on a monthly basis in November.

Later in the session, the EIA will publish its weekly report on US crude oil inventories ahead of Friday’s weekly report by Baker Hughes on the US drilling activity.

WTI significant levels

At the moment the barrel of WTI is losing 0.21% at $41.32 and a breach of $39.59 (55-day SMA) would expose $36.56 (200-day SMA) and then $33.67 (monthly low Nov.2). On the upside, the next hurdle aligns at $43.04 (monthly high Nov.10) followed by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).

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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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