WTI threatens $50.00 following EIA report
- Crude oil prices keep the negative mood near $50.00/bbl.
- Prices of the WTI stay depressed and close to YTD lows.
- US crude oil inventories rose by around 3.6M barrels last week.
Prices of the barrel of West Texas Intermediate remain under pressure on Wednesday and are approaching the critical $50.00 mark in the wake of the EIA’s weekly report.
WTI offered near $50.00/bbl
WTI stays offered after the EIA reported another weekly build in US crude oil supplies, this time by 3.577M barrels.
In addition, Weekly Distillate Stocks increased by 2.610M barrels and Gasoline inventories dropped by 0.764M barrels, bettering expectations.
Further out, supplies at Cushing went up by 1.177M barrels, offsetting last week’s 0.116M barrels draw.
WTI remains cautious, and rallies limited, amidst unabated concerns regarding oversupply (particularly following the uptrend in US output) and prospects of shrinking global demand for the next months.
In the meantime, and ahead of the OPEC+ meeting next week, Russia and Nigeria said it is still premature to announce any production curb, while Saudi Arabia stressed earlier today it will not be the sole oil producer cutting its production.
Looking ahead, Baker Hughes will release its weekly report on the US drilling activity on Friday.
WTI significant levels
At the moment the barrel of WTI is retreating 1.88% at $51.02 facing immediate contention at $50.19 (2018 low Nov.27) seconded by $48.92 (monthly low Oct.6 2017) and then $45.60 (monthly low Aug.31 2017). On the flip side, a break above $53.74 (21-day SMA) would open the door to $57.42 (21-day SMA) and finally $57.94 (high Nov.16).