- WTI prices fall about 6% to the $ 35.00 area on Thursday.
- Fast-spreading pandemic, USD strength weighs on crude oil.
- The weekly EIA report (Wednesday) adds to supply concerns.
Crude oil prices accelerate the decline to the area of multi-month lows in the $ 35.00 zone.
Weaker WTI on demand, supply concern
WTI prices fall to 4-month lows near $ 35.00 a barrel in the second half of the week as traders continue to track the relentless advance of the coronavirus pandemic and its impact on oil demand.
In fact, new restrictions in Germany, France and Spain add to the fragile situation in the United Kingdom and the recent social effervescence in Italy, all in the context of the rapid spread of the second wave of the coronavirus pandemic in the Old Continent. .
Adding fuel to the fire, the EIA reported Wednesday that US crude oil supplies unexpectedly increased by around 4.3 million barrels over the past week, in collaboration with already growing supply nerves. Another source that fuels this opinion comes from Libya, where the country continues to increase its production / export capacity after months of lockdown.
Technical levels
Right now, a barrel of WTI is shedding 5.92% at $ 35.14 and a breakout of $ 38.38 (June 15 monthly low) would expose $ 30.73 (May 22 low) and then $ 29.11 (April 3 monthly high). On the other hand, the next ascending barrier is at $ 37.23 (200-day SMA) followed by $ 40.26 (55-day SMA) and finally $ 41.87 (October 20 monthly high).
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Credits: Forex Street
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