Market news
27.10.2021, 16:41

WTI dips below $83.00 on the back of higher US stocks

  • WTI futures depreciate beyond 1% to hit session lows below $83.00.
  • Higher than expected US stocks have increased negative pressure on oil prices. 
  • WTI: testing support at $82.50.

Front-month WTI prices have extended their reversal from multi-year highs at 85.35 on Monday. Crude prices have depreciated more than 1% so far today, reaching session lows at $82.50. 

US crude oil stocks increase beyond expectations

Commercial inventories of crude oil increased in the US by 4.3 million barrels last week, according to data released by the US Energy Information Administration. These figures represent a much higher increment than the 1.91 million barrels anticipated by market analysts and have added negative pressure on crude prices.

Oil prices have surged about 35% over the last two months, boosted by concerns that the global increase in demand due to the post-pandemic recovery will cause an energy crunch. Beyond that, the Organization of Petroleum Exporting Countries remains reluctant to increase supply, which has prompted some analysts to forecast crude prices near $100 by the end of the year.

WTI testing support at test support at $82.50 area

WTI futures have accelerated their reversal on Wednesday, retreating below $83.00 to seek support at 82.50. Below here, the next potential targets might be at 81.75 (October 22 low) and $80.80 (October 20 and 21 lows).

Alternatively, a bullish reaction from current levels would send the pair to retest intra-day highs at $84.20 ahead of October 25 high at $85.35, which would open the path towards the 90.00 psychological area.

Technical levels to watch

 

 

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location