WTI Flirts with $42.00 Post-EIA, Still in Red

WTI Flirts with $42.00 Post-EIA, Still in Red

20 April 2016, 16:49
Roberto Jacobs

WTI Flirts with $42.00 Post-EIA, Still in Red

The barrel of West Texas Intermediate has seen its pullback trimmed today, currently testing the $42.00 neighbourhood following the EIA’s report.

WTI a tad better on data

The selling pressure has eased somewhat in the NA session after the EIA has reported that crude oil inventories have increased by nearly 2.1 million barrels during last week, vs. 2.4 million barrels initially estimated.

Further data saw gasoline inventories decreasing by 0.110 million and stockpiles at Cushing dropping by almost 0.250 million.

EIA’s results have alleviated the downside pressure around crude prices, although the bearish daily trend remains unchanged for the time being.

WTI levels to consider

At the moment the barrel of WTI is down 1.39% at 41.88 with the next support at $39.02 (low post-Doha Apr.18) ahead of $38.56 (76.4% Fibo of $26.05-$42.41) and then $35.24 (low Apr.5). On the flip side, a breakout of $42.88 (2016 high Apr.19) would expose $43.46 (high Nov.24 2015) and finally $48.36 (high Nov.3 2015).

(Market News Provided by FXstreet)

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