WTI slumps to three-week lows below $71 mark ahead of EIA data

WTI extends correction as risk-off remains at full steam.
US breaches the $71 mark, ignore upbeat API crude stocks data.
US EIA weekly crude stockpiles eyed for fresh cues.

Dhwani Mehta FXStreet

WTI (futures on Nymex) has broken its Asian bearish consolidative phase to the downside in the European session, reaching the lowest levels since June 18 at $70.78.

At the time of writing, the US oil is staging a minor comeback, having recaptured the $71 mark to now trade at $71.08, down nearly 1.80% on the day.

The correction from the highest levels since November 2014 at $76.98 on Tuesday remains unabated, as the sellers retain control amid deepening risk aversion across the financial markets, mainly fuelled by renewed concerns over the resurgence of coronavirus cases worldwide, with Asia-Pac nation the worst-hit.

Investors remain wary over the new covid wave and its impact on the nascent global economic recovery, which put the oil demand growth prospects at risk. Tumbling Treasury yields and US equity futures show signs of a shift in the risk sentiment towards safe-havens such as gold and yen at the expense of higher-yielding assets such as oil.

Amid risk-off mood, WTI shrugs off a drawdown in the US weekly crude stocks, as reported by the American Petroleum Institute (API) late Wednesday. The API data showed that the US inventories of crude oil fell by 7.98 million barrels last week.

The focus now shifts towards the official US government crude inventories data due to be published by the Energy Information Administration (EIA) for fresh near-term trading opportunities in oil.

WTI technical levels to consider

WTI

Overview
Today last price	70.89
Today Daily Change	-1.11
Today Daily Change %	-1.55
Today daily open	71.66

Trends
Daily SMA20	72.58
Daily SMA50	68.65
Daily SMA100	65.23
Daily SMA200	55.87

Levels
Previous Daily High	74.31
Previous Daily Low	70.64
Previous Weekly High	75.7
Previous Weekly Low	71.69
Previous Monthly High	74.17
Previous Monthly Low	66.78
Daily Fibonacci 38.2%	72.04
Daily Fibonacci 61.8%	72.91
Daily Pivot Point S1	70.09
Daily Pivot Point S2	68.53
Daily Pivot Point S3	66.42
Daily Pivot Point R1	73.77
Daily Pivot Point R2	75.88
Daily Pivot Point R3	77.44

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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