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WTI prints fresh lows near $40.20 on EIA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Crude oil prices are extending the weekly correction lower today, drooping to the area of $40.20 per barrel following the EIA report.

    WTI lower on USD buying, crude build up

    The barrel of West Texas Intermediate keeps the downside momentum alive today after the EIA has reported that crude oil inventories have increased by more than 9.3 million barrels during last week. On the bright side, gasoline inventories dropped more than expected by 4.6 million barrels, while supplies at Cushing decreased by more than 1.25 million barrels.

    On another note, skepticism keeps growing bigger around the potential output freeze in light of the upcoming meeting between OPEC and non-OPEC countries in Doha on April 17th, adding to the leg lower.

    Collaborating with the downside sentiment as well, the rally in the greenback remains unabated so far, keeping the USD-denominated assets under pressure.

    WTI levels to consider

    At the moment the barrel of WTI is down 2.82% at $40.28 facing the next support at $38.21 (76.4% Fibo of $26.05-$41.90) ahead of $37.06 (20-day sma) and then $35.96 (low Mar.15). On the other hand, a breakout of $41.90 (2016 high Mar.22) would aim for $43.46 (high Nov.24 2015) and finally $48.36 (high Nov.3 2015).
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