WTI weaker, approaches 81.00 post-EIA report

The barrel of WTI loses further ground and trades close to $81.00.
The EIA said US crude oil supplies rose more than expected.
The FOMC event will grab all the attention later on Wednesday.

Pablo Piovano FXStreet

Prices of the barrel of the America benchmark for the sweet light crude oil remain on the defensive and approach the $81.00 mark midweek.

WTI in 4-day lows

Crude oil prices lose ground for the second session in a row on Wednesday and threaten to breach the $81.00 mark per barrel following another unexpected build in weekly US crude oil inventories.

Indeed, the EIA reported a 3.291M barrels build during the week ended on October 29, while supplies at Cushing shrank by 0.916M barrels and gasoline inventories went down by 1.488M barrels. The larger-than-expected increase in crude oil stockpiles added to the nearly 3.6M barrel build reported by the API late on Tuesday.

Also weighing on crude oil prices, commodities and the rest of USD-dubbed assets appears the better tone in the greenback ahead of the key FOMC event due later in the European evening.

WTI significant levels

At the moment the barrel of WTI is losing 1.85% at $81.49 and a breach of $80.62 (weekly low October 28) would aim for $79.44 (weekly low Oct.13) and then $74.99 (weekly low Oct.7). On the upside, the next hurdle is located at $84.85 (monthly high Nov.1) followed by $85.39 (2021 high Oct.25) and finally $86.00 (round level).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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