Commodity Market: US Crude Oil registers a one-week low on unexpected US crude inventory build, resurgent COVID-19 cases in Asia

Futures on US West Texas Intermediate Crude Oil retreated for a third consecutive trading day on Thursday, while touching a fresh one-week low, following a surprise increase in US crude oil stocks. Additionally, resurgent coronavirus cases in parts of Asia added to concerns over global economic recovery and fuel demand.

A report by the US Energy Information Administration (EIA) showed on Wednesday that US crude oil inventories had risen by 0.594 million barrels during the week ended on April 16th, or the first increase in four weeks. In comparison, a consensus of analyst estimates had pointed to an inventory drop by 2.975 million barrels.

“An unexpected and high increase in the U.S. inventories fueled concerns over weak demand which came against expectations for a strong recovery in demand,” Satoru Yoshida, a commodity analyst with Rakuten Securities, was quoted as saying by Reuters.

“What is hurting the market sentiment is also the fact that the COVID-19 pandemic is spreading again at a fast pace in India and Japan despite the fact there had been hopes that the spread of vaccination would improve the infection situation.”

India, the third-biggest oil consumer worldwide, reported 314,835 new COVID-19 infections on Thursday, or the highest increase in a single day ever recorded anywhere.

Meanwhile, Japan, another key oil importer, is set to declare a third state of emergency in Tokyo for about two weeks, reports in the media stated.

As of 8:48 GMT on Thursday WTI Crude Oil Futures were retreating 0.67% to trade at $60.94 per barrel, after earlier touching an intraday low at $60.61, or their weakest price level since April 14th ($60.38 per barrel). WTI Crude Oil Futures have risen 2.87% so far in April, following a 3.80% drop in March.

Brent Oil Futures were edging down 0.34% on the day to trade at $64.82 per barrel, after earlier touching an intraday low at $64.60, or their weakest price level since April 14th ($63.90 per barrel). Brent Oil Futures have risen 2.95% so far in April, following a 2.14% drop in March.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $61.59
R1 – $62.32
R2 – $63.29
R3 – $64.02
R4 – $64.75

S1 – $60.62
S2 – $59.89
S3 – $58.92
S4 – $57.95

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $65.51
R1 – $66.03
R2 – $67.03
R3 – $67.55
R4 – $68.08

S1 – $64.51
S2 – $63.99
S3 – $62.99
S4 – $62.00

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News