WTI trades below $58 despite larger-than-expected draw in US crude oil stocks

OPEC cuts 2020 global oil demand growth forecast by 60,000 bpd.
EIA reports a draw of 6.9 million barrels in US crude oil stocks.

Eren Sengezer FXStreet

Crude oil prices struggled to capitalize on the Energy Information Administration's (EIA) weekly oil market report and the barrel of West Texas Intermediate (WTI) continues to trade in the negative territory.

The EIA today announced that commercial crude oil inventories in the US decreased by 6.9 million barrels in the week ending September 6 compared to analysts estimates for a draw of 2.6 million barrels.

Although a larger-than-expected draw in crude oil stocks usually boosts crude oil prices, worries over a dismal global energy demand outlook didn't allow that. As of writing, the barrel of WTI was down 0.55% on the day at $57.50.

OPEC points to negative impact of economic slowdown on oil demand

In its monthly report earlier today, OPEC today said that it cut its forecast for 2020 global oil demand growth by 60,000 barrels per day to 1.08 million barrels per day citing global economic slowdown. Regarding the global oil supply, "Strong growth in non-OPEC supply in 2019-2020 highlights need for producers to support market stability to avoid potential oversupply," OPEC noted.

Technical levels to watch for

WTI

Overview
Today last price	57.71
Today Daily Change	-0.09
Today Daily Change %	-0.16
Today daily open	57.8

Trends
Daily SMA20	55.54
Daily SMA50	56.2
Daily SMA100	57.43
Daily SMA200	56.41

Levels
Previous Daily High	58.66
Previous Daily Low	57.12
Previous Weekly High	57.63
Previous Weekly Low	52.77
Previous Monthly High	58.02
Previous Monthly Low	50.51
Daily Fibonacci 38.2%	57.71
Daily Fibonacci 61.8%	58.07
Daily Pivot Point S1	57.06
Daily Pivot Point S2	56.32
Daily Pivot Point S3	55.52
Daily Pivot Point R1	58.6
Daily Pivot Point R2	59.4
Daily Pivot Point R3	60.14

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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