WTI oil price remains under pressure and retests $20 support after Tuesday’s recovery attempts stalled, capped by falling 5DMA, keeping the upside limited, as expected. Oil prices registered the biggest quarterly and monthly fall in the history, with strong rise in crude inventories (API report released late Tuesday showed build of 10.4 million barrels last week, compared to previous week’s 1.2 million barrels draw) that additionally weighs on oil price. Traders focus today’s release of US EIA weekly crude stocks report (3.9 million barrels build f/c vs previous week’s 1.6 million barrels rise) for further negative signals. Fundamentals remain bearish as global demand continues to fall and production remains unchanged, with producers facing huge problems with storing millions of barrels. Near-term action may hold within narrow range around $20 handle before eventual break lower, which would expose $17 zone (2001 trough).
Res: 20.77, 21.09, 21.88, 22.71
Sup: 19.90, 19.40, 18.12, 17.00
