WTI slumps to fresh two-week lows below $38

Crude oil prices are suffering heavy losses on Thursday.
Rising coronavirus cases hurt the energy demand outlook.
Uncertainty surrounding US stimulus weighs on crude oil.

Eren Sengezer FXStreet

After rising nearly 2% on Wednesday, the barrel of West Texas Intermediate (WTI) spent the first half of the day consolidation its gains near $40. However, with the market mood turning sour during the American session, the WTI fell sharply and touched its lowest level in two weeks $37.60 before recovering modestly. As of writing, the WTI was down 4.15% on a daily basis at $38.18.

Dismal energy demand outlook drags WTI lower

Resurfacing concerns over an uneven recovery in global energy demand amid the rising number of COVID-19 cases globally, especially in Europe, continue to weigh on crude oil prices. Earlier in the day, the UK reported 6,914 new cases on Thursday and the French Health Ministry announced that the Paris region has passed three thresholds for the maximum alert.

On the other hand, citing a Libyan industry source, Reuters reported on Thursday that Libya's oil output has risen to 270,000 barrels per day to put additional weight on crude oil prices.

Meanwhile, the uncertainty surrounding the next coronavirus stimulus bill in the US is making it difficult for the WTI to recover its losses. US House Speaker Nancy Pelosi said on Thursday that Republicans and Democrats were still far apart on state and local aid but added that she was still optimistic about reaching a deal.

Technical levels to watch for

WTI

Overview
Today last price	38.69
Today Daily Change	-1.28
Today Daily Change %	-3.20
Today daily open	39.97

Trends
Daily SMA20	39.45
Daily SMA50	41.1
Daily SMA100	39.42
Daily SMA200	40.13

Levels
Previous Daily High	40.47
Previous Daily Low	38.8
Previous Weekly High	41.51
Previous Weekly Low	38.92
Previous Monthly High	43.56
Previous Monthly Low	36.43
Daily Fibonacci 38.2%	39.84
Daily Fibonacci 61.8%	39.44
Daily Pivot Point S1	39.02
Daily Pivot Point S2	38.08
Daily Pivot Point S3	37.35
Daily Pivot Point R1	40.69
Daily Pivot Point R2	41.42
Daily Pivot Point R3	42.37

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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