WTI navigates near $61.00 post-EIA report

• Crude oil prices alternate gains with losses around the $61.30 region.
• Earlier, WTI dropped to fresh 8-month lows in the vicinity of $61.00.
• US crude oil inventories rose by almost 6.4M barrels last week.

The selling pressure around crude oil remains unabated so far this week, intensifying the breakdown of the $62.00 mark per barrel today, levels last seen in March.

WTI offered below $62.00/bbl

Prices of the barrel of the West Texas Intermediate faded the initial spike to the $63.00 neighbourhood in response to news that Saudi Arabia and Russia could be discussing the idea of production cuts next year. Crude oil, however, resumed the downside soon afterwards and recorded fresh lows in the $62.30 region.

WTI stays offered after the EIA reported another build in US crude oil stockpile, this time by 5.783 M barrels during last week.

In addition, Weekly Distillate Stocks dropped by 3.465M barrels and Gasoline inventories rose by 1.852M barrels, more than forecasted.

Further out, supplies at Cushing increased by 2.419M barrels, adding to last week’s 1.878M barrels build.

Prices of the WTI remain under heavy pressure amidst another build in stockpiles as reported by today’s EIA and the API late on Tuesday. Despite sanctions against Iranian oil exports are in place since November 4, the US will allow some oil importers to keep buying from Iran for around six more months, putting to rest any attempt of recovery in prices.

Later in the week, Baker Hughes will publish its weekly figures for the US drilling activity on Friday.

WTI significant levels

At the moment the barrel of WTI is down 0.70% at $61.27 and a breakdown of $61.16 (low Nov.7) would aim for $60.03 (monthly low Mar.3) and then $59.23 (2018 low Feb.12). On the upside, the next hurdle now aligns at $64.45 (10-day SMA) followed by $67.62 (200-day SMA) and finally $67.85 (high Oct.29).