WTI remains near $35 multi-month lows after Baker Hughes’ report

WTI futures remain near multi-month lows at $35.
Oil prices plunge about 11% on the week on coronavirus concerns.
Baker Hughes reports the sixth consecutive weekly increase on US oil rigs.

Guillermo Alcala FXStreet

Front-month WTI futures remain near multi-month lows, at $35.35, set for an 11% weekly drop as the release of the Baker Hughes oil rigs data has failed to offer support.

Oil prices plunge on fears about new lockdowns

The US West Texas Intermediate has taken a dip this week, weighed by concerns about the impact on global demand as COVID-19 cases surge in the US and Europe. The new lockdowns introduced in France and Germany, with Spain declaring regional lockdowns has boosted negative pressure on oil prices.

Beyond that, Baker Hughes reported that the number of active oil rigs in the US increased by 10 to 221. These numbers confirm the sixth consecutive increase in the oil rigs count, which adds concerns about an oversupply as the second wave od the pandemic accelerates.

Earlier today, news that Kuwait would back any OPEC+ decision regarding oil production cuts has offered some respite to crude price and allowed the WTI to pop up above $36 for a short time before moving back to the low range of $35.

Oil producers are divided about Russia and Saudi Arabia’s idea of extending the current output cuts of 7.7 million barrels a day into next year, which is weighing further on prices.

Technical levels to watch

WTI

Overview
Today last price	35.54
Today Daily Change	-0.71
Today Daily Change %	-1.96
Today daily open	36.25

Trends
Daily SMA20	39.86
Daily SMA50	40.22
Daily SMA100	40.46
Daily SMA200	37.98

Levels
Previous Daily High	37.9
Previous Daily Low	35.08
Previous Weekly High	41.93
Previous Weekly Low	39.65
Previous Monthly High	43.56
Previous Monthly Low	36.43
Daily Fibonacci 38.2%	36.16
Daily Fibonacci 61.8%	36.83
Daily Pivot Point S1	34.92
Daily Pivot Point S2	33.59
Daily Pivot Point S3	32.1
Daily Pivot Point R1	37.74
Daily Pivot Point R2	39.23
Daily Pivot Point R3	40.56

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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