WTI sinks in the psychological $70 area


  • WTI holds in the bullish territory above the $70 level.
  • The IEA cut its demand forecast for the third quarter.

WTI is trading  0.44% lower at $70.28 and has travelled between a low of $70.01 and a high of $71.19

Another storm threatens the US energy hub in the Gulf of Mexico named 'Nicholas' which has made landfall in Texas after being upgraded to a hurricane and will add to existing problems for coastal refineries and petrochemical facilities.

Meanwhile, the IEA cut its demand forecast for the third quarter, having highlighted that global oil supplies fell by 540k barrels a day in August thanks to unexpected disruptions and thus wiping out extra supply from OPEC+.

The IEA's Oil Market Report for September showed headline inventories down 34 million barrels month over month, to 2,850 million barrels in July, and are overall 516 mb/d undersupplied compared with the 2015 to 2019 average in the month.

Reuters reported that crude, gasoline and middle distillate inventories are drawing 40 million barrels month over month and undersupplied by 1,255 mb/d versus norms, to 2,010 million barrels, which is 113 million barrels below the 2015 to 2019 average of 2,123 million barrels.

''Middle distillate inventories during the month posted a strong showing after months of lag, declining 11 million barrels month over month to 571 million barrels, undersupplied by 813 mb/d versus norms and bringing stocks below the 2015-2019 average of 581 million barrels for the first time since March 2020, according to TPH.

Meanwhile, gasoline inventories were also undersupplied versus norms at 285 mb/d, with inventories drawing 15 million barrels month over month to 367 million barrels, which is below the 2015 to 2019 range with a lower bound of 372 million barrels.''

OPEC under eye

Meanwhile, analysts at TD Securities explained that l concerns are also brewing that OPEC+ may not manage to raise production, despite the group's plan to continue raising its output, as Russia's total production is struggling to keep up with its quota.

''On the horizon, more modest demand growth will see the market find balance, leading to concerns for energy traders as consensus expectations should see the market shift out of a deficit and into balance in coming months, but the upside for energy markets resides in supply risks.''

WTI

Overview
Today last price 70.24
Today Daily Change -0.19
Today Daily Change % -0.27
Today daily open 70.43
 
Trends
Daily SMA20 67.55
Daily SMA50 69.36
Daily SMA100 68.82
Daily SMA200 62.64
 
Levels
Previous Daily High 70.72
Previous Daily Low 69.3
Previous Weekly High 69.75
Previous Weekly Low 67.41
Previous Monthly High 73.54
Previous Monthly Low 61.73
Daily Fibonacci 38.2% 70.18
Daily Fibonacci 61.8% 69.85
Daily Pivot Point S1 69.58
Daily Pivot Point S2 68.73
Daily Pivot Point S3 68.16
Daily Pivot Point R1 71
Daily Pivot Point R2 71.58
Daily Pivot Point R3 72.43

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.

EUR/USD News

GBP/USD: Pressure mounts ahead of central banks’ announcements

The Fed and the BoE will make announcements this week. UK public inflation expectations are up for this year and the upcoming ones. GBP/USD is technically bearish in the near term, poised to retest August monthly low.

GBP/USD News

Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures