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).

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.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold moves closer to $5,150 amid sustained safe-haven flows

Gold climbs back above $5,100 during the Asian session on Wednesday, moving away from an over one-week low, touched the previous day. Sustained safe-haven flow, amid escalating geopolitical tensions in the Middle East, acts as a tailwind for the bullion. However, a bullish US Dollar and reduced bets for more aggressive easing by the US Fed might keep a lid on the non-yielding yellow metal ahead of the US ADP report and ISM Services PMI later today.