WTI plummets to new 2-week lows sub-$56.00 ahead of EIA
- WTI tumbles further to the sub-$56.00/bbl area.
- Saudi oil facilities recovering faster than expected.
- API reported 1.4M barrels build last week.
Prices of the West Texas Intermediate are extending the weekly correction lower to levels below the $56.00 mark per barrel, the lowest level in the last couple of weeks.
WTI now looks to EIA, trade, Middle East
Prices of the barrel of the American reference for the sweet light crude oil are shedding further ground on Wednesday, breaking below key levels at the 100-day and 200-day SMAs at $56.92 and $56.45, respectively.
In latest news, Iran suggested it could ease its position on the nuclear deal if the US lifts sanctions against the country. At the same time, others news stressed that a meeting between Rouhani and Trump at the UN Assembly is highly unlikely.
WTI has been also losing momentum after Saudi Arabia said the repairs following the attacks to the Kingdom’s oil facilities are almost completed. It is worth noting that WTI already shed nearly 12% since the post-attack spike to levels beyond the $63.00 mark per barrel on September 16th.
In the data sphere, the API reported late on Tuesday that US crude oil supplies rose by 1.4M barrels during last week. Later today, it will be the EIA’s turn to report on the weekly variation of US crude oil inventories.
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).