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WTI on the defensive below $45.00/bbl

  • The barrel of WTI extends losses to the $44.20 region.
  • Prospects of lower demand, oversupply weigh on prices.
  • EIA’s weekly report coming up next on Friday.

Concerns over a lower demand for crude oil in the next month along with the re-emergence of supply glut fears keep weighing on traders’ sentiment and are sending prices of the WTI to fresh lows near $44.20.

WTI weaker on USD buying, sentiment

Prices of the barrel of the West Texas Intermediate remain on the negative ground so far this week amidst a moderate rebound in the demand for the greenback and usual jitters regarding prospects of a lower oil demand in 2019 and potential oversupply conditions following rising output in the US and Russia.

In addition, lower-than-expected Chinese manufacturing data earlier in the day hurt the sentiment in the global markets, reinstating the idea that a global slowdown could be in the offing and in turn forcing the barrel of crude oil to recede further below the critical support at the $45.00 mark.

Data wise, the EIA is expected to release its weekly report on US crude oil supplies on Friday along with Baker Hughes’ US oil rig count.

WTI significant levels

At the moment the barrel of WTI is down 0.36% at $44.84 facing the next support at $44.23 (low Jan.2) seconded by 42.22 (2018 low Dec.24) and then $42.08 (monthly low Jun.21 2017). On the flip side, a breakout of $46.78 (high Dec.26) would aim for $48.70 (21-day SMA) and finally $53.20 (high Dec.13).

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