WTI weaker, extends the drop below 39.00

Prices of the WTI return to the sub-$39.00 area on Thursday.
Demand fears stemming from the pandemic keep weighing on prices.
US oil rig count comes up next on Friday.

Pablo Piovano FXStreet

Prices of the WTI extends the erratic performance so far this week and now recede to the sub-$39.00 region per barrel.

WTI hurts by weak demand prospects

Crude oil prices fade Wednesday’s uptick and are back to the area below the key $40.00 mark per barrel on Thursday, as traders continue to gauge the impact of the coronavirus pandemic on the demand for the commodity.

Prices of the West Texas Intermediate edge lower in the second half of the week despite the EIA reported a larger-than-expected drop in US crude oil supplies. In fact, the agency said inventories went down by almost 2 million barrels on the week ended on September 25, prolonging the downtrend for the third straight session so far.

On Friday, Baker Hughes will close the weekly calendar after it publishes its report on the US drilling activity.

WTI significant levels

At the moment the barrel of WTI is losing 2.45% at $38.95 and a break below $38.44 (weekly low Sep.29) would aim for $36.15 (monthly low Sep.8) and then $31.16 (low May 28). On the upside, the next hurdle is located at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3).

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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