WTI drops further near $62.50 post –EIA, US-China weighs
- Crude oil prices extend the correction lower to $62.50 after EIA.
- US oil supplies went down more than expected by 4.617 mbpd last week.
- WTI sells off to fresh 2-week lows on US-China trade concerns.
Prices of the barrel of the West Texas Intermediate are extending the weekly decline despite the EIA reported US oil supplies shrunk more than initially forecasted.
WTI tumbles to 2-week lows
Prices of the American reference for the sweet light crude oil are navigating multi-day lows in the mid-$62.00s per barrel today in the wake of the EIA’s weekly report. In fact, the DoE said US crude oil stockpiles decreased more than expected in the week ending on March 23 by 4.617 million barrels vs. an expected build of 1.400 million barrels.
Furthermore, Weekly Distillates Stocks increased by 0.537 million barrels and Gasoline Inventories decreased by 1.116 million barrels (less than expected).
Further out, supplies at Cushing rose by 3.666 million barrels, adding to last week’s 1.804 million barrels gain.
In the meantime, prices of the black gold remain depressed amidst increasing risk aversion stemming from US-China trade issues, particularly after China announced further retaliatory measures.
More from the oil docket will see the weekly oil rig count by driller Baker Hughes published on Friday (-7prev.).
WTI significant levels
At the moment the barrel of WTI is losing 1.50% at $62.56 facing immediate contention at $61.08 (100-day sma) followed by $60.03 (low Mar.8) and finally $58.10 (2018 low Feb.9). On the other hand, a breakout of $64.46 (10-day sma) would aim for $65.36 (high Apr.2) and then $66.38 (high Mar.26).
