WTI volatile post-EIA, back to $42.50

The barrel of West Texas Intermediate has managed to revert the initial negative mood soon after the EIA’s report, although the test of highs near $43.50 proved to be ephemeral.

WTI weaker after EIA’s report

The barrel of WTI has rapidly faded the test of the mid-$43.00s after the EIA’s report showed crude oil inventories have increased by more than 1.05 million barrels during last week vs. forecasts for a +1.0 million barrels decrease.

Further data showed another large draw of gasoline inventories (slightly more than 2.8 million barrels) while inventories in Cushing increased by 1.163 million barrels.

Additionally, the offered tone in USD remains well and sound so far, somewhat limiting the downside.

WTI levels to consider

At the moment the barrel of WTI is losing 0.12% at $42.72 facing the next support at $39.26 (low Aug.2) ahead of $37.61 (low Apr.18) and finally $35.24 (low Apr.5). On the upside, a breakout of $43.39 (high Aug.8) would aim for $45.00 (100-day sma) and then $46.93 (high Jul.12).