WTI trims a part of intraday losses, still down over 1.5% for the day

Concerns about the ever-surging COVID-19 cases weighed heavily on crude oil.
Wednesday’s bullish IEA forecast, US supply data did little to lend any support.

Haresh Menghani FXStreet

WTI crude oil reversed an early North American session dip to sub-$64.00 levels and was last seen trading around the $64.60-70 region, still down nearly 1.5% for the day.

The commodity witnessed some heavy selling on Thursday and extended the previous day's retracement slide from the vicinity of eight-week tops, around the $66.60-70 region touched earlier this month. The continuous surge in new COVID-19 cases in India continued fueling worries about the fuel demand recovery. This, in turn, overshadowed the optimism led by the International Energy Agency (IEA) report on Wednesday and acted as a headwind for the black gold.

In its monthly report released on Wednesday, the IEA noted that the demand for crude is outpacing supply and that the discrepancy will grow further. This comes after the OPEC report earlier this week pointed to strong fuel demand recovery in 2021 amid the solid economic recovery in the US and China. Traders even shrugged off Wednesday's bullish supply data from the US EIA, which showed a much smaller than anticipated draw of 427K barrels for the week ending May 7.

With Thursday's decline, the commodity has now turned lower for the week. Some follow-through selling below the $64.00 mark, leading to a subsequent breakthrough the weekly swing lows around the $63.70 region will be seen as a fresh trigger for bearish traders. This, in turn, will set the stage for additional losses and drag spot prices further towards testing levels below the $63.00/barrel mark.

Technical levels to watch

WTI

Overview
Today last price	64.55
Today Daily Change	-1.18
Today Daily Change %	-1.80
Today daily open	65.73

Trends
Daily SMA20	63.77
Daily SMA50	62.57
Daily SMA100	58.56
Daily SMA200	50.18

Levels
Previous Daily High	66.63
Previous Daily Low	64.97
Previous Weekly High	66.7
Previous Weekly Low	62.88
Previous Monthly High	65.4
Previous Monthly Low	57.66
Daily Fibonacci 38.2%	66
Daily Fibonacci 61.8%	65.61
Daily Pivot Point S1	64.93
Daily Pivot Point S2	64.13
Daily Pivot Point S3	63.28
Daily Pivot Point R1	66.58
Daily Pivot Point R2	67.43
Daily Pivot Point R3	68.23

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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