WTI breaches $55.00 on EIA report, waits for FOMC
- The barrel of WTI loses the grip further and breaks below $55.00.
- EIA reported a nearly 5.7M barrel build during last week.
- Attention remains on the FOMC event later in the day.
Prices of the WTI remain well on the defensive so far this week, briefly dropping below the $55.00 mark per bar today in the wake of the weekly EIA report.
WTI offered around $55.00/bbl
Prices of the barrel of West Texas Intermediate has quickly pierced the $55.00 mark after US crude oil supplies unexpectedly went up by nearly 5.7M barrels during last week.
In addition, Weekly Distillate Stocks shrunk by 1.032M barrels and Gasoline inventories dropped by 3.037M barrels, bettering forecasts.
Further out, inventories at Cushing rose by 1.572M barrels, adding to last week’s 1.506M barrels build.
In the meantime, oil traders continue to look to developments from the US-China trade front, where the ‘Phase One’ deal should be signed anytime in November.
Extra weakness in crude oil prices came after the IEA published a bearish report on global crude oil demand, while rumours that Saudi Arabia could cut its oil output further have tempered the downbeat mood somewhat.
Moving forward, driller Baker Hughes will publish its weekly report on the US oil rig count on Friday.
WTI significant levels
At the moment the barrel of WTI is retreating 2.20% at $56.02 and a breach of $54.00 (low Sep.12) would expose $52.84 (monthly low Sep.3) and finally $50.52 (monthly low Aug.7). On the upside, the next hurdle is located at $57.84 (10-day SMA) followed by $60.92 (monthly high Jul.15) and then $63.37 (monthly high Sep.16).