Futures on US West Texas Intermediate Crude Oil eased from yesterday’s seven-week peak ($41.90 per barrel) on Wednesday after an unexpected increase in US crude oil inventories last week stoked concerns over a supply glut.
The American Petroleum Institute (API) reported on Tuesday that US crude oil stocks had risen by 0.584 million barrels during the week ended October 16th, surprising market players as analyst estimates had pointed to a 0.240 million barrel decrease.
Meanwhile, accelerating virus spread continued to weigh on global oil consumption prospects, with some parts of Europe re-imposing lockdown restrictions.
The latest data by the Center for Systems Science and Engineering at Johns Hopkins University showed total confirmed COVID-19 cases had already surpassed 40.795 million worldwide, with US cases now exceeding 8.274 million. Global death toll has surpassed 1.124 million, with more than 221,000 deaths reported in the United States alone.
“A U.S. inventory build, together with the recent resurgence of the COVID-19 cases worldwide, prompted investors to make position adjustments,” Chiyoki Chen, chief analyst at commodity broker Sunward Trading, said.
On the other hand, oil markets received certain support from reports that the White House and Democrats have taken a step closer to an agreement on a new fiscal stimulus package as President Donald Trump said he was willing to accept a large aid bill.
“Hopes for economic stimulus in the United States and other countries to combat a pandemic-led slump in consumption are expected to cap losses, but planned reduction in output cuts by OPEC+ will also limit any future gains,” Satoru Yoshida, a commodity analyst at Rakuten Securities, said.
As of 9:20 GMT on Wednesday WTI Crude Oil Futures were retreating 1.80% to trade at $40.95 per barrel, while moving within a daily range of $40.85-$41.59 per barrel. WTI Crude Futures have gained 1.84% so far in October, following a 5.61% slump in September.
Brent Oil Futures were losing 0.58% on the day to trade at $42.52 per barrel, while moving within a daily range of $42.34-$43.02 per barrel. Brent Oil Futures have risen 0.90% so far in October, following a 7.55% loss in September.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $41.35
R1 – $42.25
R2 – $42.79
R3 – $43.69
R4 – $44.58
S1 – $40.81
S2 – $39.91
S3 – $39.37
S4 – $38.82
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $42.75
R1 – $43.30
R2 – $43.82
R3 – $44.37
R4 – $44.91
S1 – $42.23
S2 – $41.68
S3 – $41.16
S4 – $40.63
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
