WTI extends consolidation around $ 40.00 before API report

• WTI prices are moving within the usual range around $ 40.00.
• The next major resistance emerges around $ 41.50, monthly highs.
• Below is the API’s weekly crude oil supply report.

WTI barrel prices they extend the consolidation mood for yet another session on Tuesday, always around the key $ 40.00 level.

WTI attentive to the pandemic, datos

There are no new developments in the crude oil universe, as traders remain vigilant as the second wave of the coronavirus pandemic progress and its impact on global growth prospects.

The West Texas Intermediate barrel remains sideways and posted modest gains on Tuesday after three straight setbacks and despite the release of recent Q3 GDP figures from China, which showed that the economic recovery is holding steady so far.

Additionally, and supporting crude prices a bit, OPEC Secretary M.Barkindo recently said that the cartel will do everything possible to prevent another price drop from happening again.

However, the outlook for oil demand remains fragile at best, always amid the fast-spreading pandemic and growing concern about economic recovery.

Later in the US session, API will report on the weekly change in crude oil supplies (-5,422 mb preview) ahead of Wednesday’s EIA report and Baker Hughes weekly report on US drilling activity. . on Friday.

Technical levels

At the moment, a barrel of WTI is down 0.28% to $ 40.58 and a breakout of $ 39.07 (Oct. 12 weekly low) would target $ 37.91 (200-day SMA) and then $ 36.66 (Oct. 2 monthly low). On the other hand, the next obstacle is located at $ 41.46 (weekly maximum on September 18) seconded by $ 43.75 (monthly maximum on August 26) and finally $ 48.64 (monthly maximum on March 3).