WTI: Sell-off resumes, September low of $36.13 at risk


  • WTI extends the rout on coronavirus lockdowns in the EU.
  • Rising US crude supplies intensify supply glut worries.
  • US Q3 GDP and virus data to dominate the market sentiment.

Following a brief consolidative stint, WTI (futures on NYMEX) resumes its sell-off in the European session, closing in on the September low of $36.13.

The black gold extends Wednesday’s 5% slide, now shedding about 3% to trade at $36.45. A breach of September lows will expose the bears to the weakest levels since June this year.

The WTI barrel continues to face a double whammy on both the demand and supply fronts. New coronavirus-induced lockdowns in Germany and France put the global economic rebound at risk while weighing on oil, in the wake of dwindling demand for oil and its products.

Meanwhile, growing supply glut worries amid rising US crude stockpiles and resumption of the Libyan oil output continue to dampen the sentiment around the US oil. The Energy Information Administration (EIA) reported that the US crude stockpiles rose by 4.3 million barrels in the week to Oct. 23, a bigger increase than expected, per Reuters.

Looking ahead, the broader market sentiment and the virus data will continue to have a significant impact on the US dollar-denominated oil, as the dollar bulls regain control amid the return of risk-off flows.

WTI technical levels

WTI

Overview
Today last price 36.45
Today Daily Change -0.88
Today Daily Change % -2.35
Today daily open 37.51
 
Trends
Daily SMA20 39.98
Daily SMA50 40.35
Daily SMA100 40.46
Daily SMA200 38.09
 
Levels
Previous Daily High 39.14
Previous Daily Low 37.11
Previous Weekly High 41.93
Previous Weekly Low 39.65
Previous Monthly High 43.56
Previous Monthly Low 36.43
Daily Fibonacci 38.2% 37.88
Daily Fibonacci 61.8% 38.36
Daily Pivot Point S1 36.7
Daily Pivot Point S2 35.89
Daily Pivot Point S3 34.67
Daily Pivot Point R1 38.72
Daily Pivot Point R2 39.94
Daily Pivot Point R3 40.75

 

 

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