- WTI prices add to weekly earnings above $ 38.00.
- Traders remain focused on demand, OPEC +, pandemic.
- The API reported a drop of 8 million barrels late on Tuesday.
US benchmark prices for a barrel of light crude dulce they extend the weekly high, although it is still trading below $ 39.00.
WTI now attentive to EIA report, pandemic
Crude oil prices manage to extend the rally from Monday’s lows in the region below $ 34.00 to the $ 39.00 per barrel zone. However, the price rally is expected to be short-lived, mainly supported by short hedging moves.
Meanwhile, the advance of the pandemic and its impact on the oil industry remain the main catalysts for price action. In addition to these concerns, but on the supply side, Libya’s oil production / export continues to grow after the country left behind force majeure in many of its ports and oil fields.
On the favorable side of prices, OPEC + continues to mull over the idea of postponing its planned production increases (originally to begin in January 2021). Along the same lines, API said that crude oil supplies from the United States fell by more than 8 million barrels during the past week, beating estimates.
Later Wednesday, the EIA will report on U.S. crude oil inventories ahead of Friday’s oil rig count by driller Baker Hughes.
Technical levels
At the moment, a barrel of WTI is up 1.40% to $ 38.66 and is facing the next ascending barrier at $ 38.86 (November 3 monthly high) seconded by $ 40.30 (100-day SMA) and finally $ 41.87 (monthly high of the 20th. October). On the other hand, a gap of $ 33.67 (monthly low on November 2) would expose $ 29.11 (monthly high on April 3) and then $ 19.29 (monthly low on March 30).
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Credits: Forex Street
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