WTI tumbles to lows near $67.50 post-EIA
- Crude oil prices extend the downside near $67.50 post-EIA.
- US oil inventories unexpectedly rose by almost 2.2 mbpd.
- WTI in fresh 2-day lows following the DoE’s report.
Prices of the WTI are extending the weekly correction lower on Wednesday in response to an unexpected build in US crude oil stockpiles during last week, currently hovering over the mid-$67.00s per barrel.
WTI drops to 2-day lows
Prices of the barrel of the West Texas Intermediate are testing 2-day lows in levels around $67.50 per barrel today in the wake of the weekly report by the DoE.
In fact, the EIA reported US crude oil supplies unexpectedly increased by 2.170 million barrels in the week ended on April 20 vs. an expected drop of 1.6 million barrels.
Furthermore, Weekly Distillates Stocks decreased by 2.611 million barrels and Gasoline Inventories went up by 0.840 million barrels, missing consensus.
Additionally, inventories at Cushing rose by 0.459 million barrels, reverting last week’s 1.115 million barrels drop.
In the meantime, crude oil remains under some pressure after hitting fresh multi-year tops just beyond the psychological $70.00 mark per barrel, as geopolitical concerns in the Middle East have practically dissipated, Russia will not suffer extra sanctions for now, while the probability of sanctions against Iran has diminished after yesterday’s comments by Trump and Macron.
WTI significant levels
At the moment the barrel of WTI is down 0.38% at $67.47 facing the next support at $67.14 (low Apr.24) seconded by $65.81 (21-day sma) and then $65.56 (low Apr.17). On the other hand, a break above $69.55 (2018 high Apr.19) would open the door to $69.66 (monthly high Dec.2014) and finally $70.00 (psychological level).