WTI extends the weekly decline below $22.00
- Prices of the WTI trade deep into the red below $22.00.
- Price war, COVID-19 keep traders’ sentiment depressed.
- US oil rig count coming up next on the docket.
Crude oil prices remain entrenched into the negative territory so far this week, with the barrel of WTI falling heavily to sub-$22.00 levels.
WTI targets the $20.00/bbl and below
Prices of the West Texas Intermediate are losing ground for the third session in a row at the end of the week, coming under extra selling pressure and breaking below the $22.00 mark per barrel.
As usual, sentiment around traders soured once again on the back of unremitting concerns on the impact of the coronavirus on the global demand for the commodity and growth prospects, while the also unabated price war between Russia and Saudi Arabia keep oversupply jitters well and sound.
The commodity remains on the defensive and paid little attention to rumours suggesting a potential agreement between Russia, the OPEC, the US and other oil producers, all aimed to tackle the ongoing price crisis and sponsor some recovery in the outlook for crude oil.
Moving forward, driller Baker Hughes will close the weekly calendar following the release of the weekly US oil rig count (-19 prev.).
What to look for around WTI
Crude oil prices remain under heavy pressure in a context dominated by the lethal combination of supply and demand drivers. Also adding extra pressure, there is still the possibility that Saudi Arabia could carry on with its plans to increase oil exports by more than 12M bpd as soon as the next month. A potential relief to this low-lower-prices-scenario could come in the form of a US intervention, which is expected to morph into some sort of agreement between the US, Russia, Saudi Arabia and another countries.
WTI significant levels
At the moment the barrel of WTI is retreating 6.47% at $21.46 and a breach of $20.08 (2020 low Mar.18) would expose $17.12 (monthly low November 2001) and finally $10.65 (monthly low December 1998). On the upside, the next resistance aligns at $28.46 (high Mar.20) seconded by $32.32 (21-day SMA) and then $36.28 (high Mar.11).