- WTI prices turn positive above the $ 40.00 level.
- The EIA reported a drop of nearly 1 million barrels a week on Wednesday.
- Traders’ focus now seems to have shifted to fuel demand.
West Texas Intermediate barrel prices they are trading in a tight range, although they manage to stay above the key $ 40.00 level on Thursday.
WTI Cautious Amid Demand Concerns
WTI prices are making up some lost ground following Wednesday’s sharp pullback of nearly 3% to $ 39.70 a barrel, where decent containment appears to have emerged for now.
Meanwhile, crude oil prices remain cautious in the context of pervasive concerns about the impact of the fast-spreading coronavirus pandemic on the oil industry, particularly on its demand.
In addition to lingering concerns about demand, the EIA on Wednesday reported an unexpected rise in gasoline inventories of nearly 1.9 million barrels (versus an expected drop of 1.8 million barrels), raising concerns around the fuel demand.
Closing the weekly schedule, driller Baker Hughes will report on its weekly oil rig count on Friday.
Technical levels
Right now, a barrel of WTI is up 1.14% to $ 40.46 and is facing the next upward barrier at $ 41.87 (October 20 monthly high) seconded by $ 43.75 (August 26 monthly high) and finally $ 48.64 (monthly high March 3). On the downside, a breakout of $ 39.07 (Oct. 12 weekly low) would target $ 37.73 (200-day SMA) and then $ 36.66 (Oct. 2 monthly low).
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Credits: Forex Street
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