WTI tumbles to lows near $62.30 post-EIA
- Crude oil prices test lows in the $62.30 area on EIA report.
- Oil inventories increased last week by 3.019 mbpd, surprising traders.
- Crude oil under pressure on USD-buying and ahead of Powell.
Prices of the barrel of the West Texas Intermediate are navigating the area of daily lows in the mid-$62.00s in the wake of an unexpected build in supplies reported by the EIA.
WTI weaker below $63.00
Prices of the WTI are extending the correction lower from Monday’s tops above the key $64.00 mark per barrel amidst a renewed and strong rebound in the demand for the buck.
WTI retreated further on Wednesday after the EIA reported crude oil supplies rose by 3.019 million barrels vs. a forecasted build of 2.4 million barrels. In addition, weekly distillates stocks went down by 0.960 million barrels and gasoline stockpiles rose by 2.483 million barrels.
Additional data saw supplies at Cushing decreasing by 1.218 million barrels, adding to last week’s 2.664 million barrels drop.
In the meantime, WTI is testing the key 200-hour sma around $62.45 and recording at the same time new 3-day troughs.
Next risk events for crude oil should be tomorrow’s testimony by Fed’s J.Powell before the Senate Banking Committee, key US data and Friday’s US oil rig count by driller Baker Hughes (+1 prev.).
WTI significant levels
At the moment the barrel of WTI is losing 0.57% at $62.52 and a break below $62.49 (21-day sma) would open the door to $61.39 (38.2% Fibo of $66.72-$58.10) and then $60.88 (low Feb.22). On the flip side, the next up barrier emerges at $63.43 (61.8% Fibo of $66.72-$58.10) seconded by $64.30 (high Feb.26) and finally $66.35 (high Feb.2).
