WTI retreats below $63.00 post-EIA report

• US inventories rose more than estimated last week.
• WTI offered sub-$63.00.
• WTI drops to 3-week lows.

Prices of the barrel of the American benchmark for the sweet light crude oil are fading the earlier spike to the boundaries of the $64.00 mark following the DoE’s weekly report on US inventories.

WTI weaker on EIA build

Prices for the WTI accelerated the downside after the EIA reported an unexpected build of 1.895 million barrels during last week, less than the forecasted increase of 3.189 million barrels.

Furthermore, weekly distillates stocks increased by 3.926 million barrels and gasoline stockpiles went up by 3.414 million barrels, both readings coming in below estimates.

In addition, supplies at Cushing decreased by 0.711 million barrels.

Crude oil prices are testing fresh 3-week lows in the wake of the EIA’s report and always amidst heightened volatility in the global markets and unabated concerns over the rising crude oil production in the US.

WTI significant levels

At the moment the barrel of WTI is losing 0.88% at $62.83 and a break below $62.53 (38.2% Fibo of $55.74-66.72) would aim for $61.09 (low Jan.5) and finally $60.79 (55-day sma). On the upside, the immediate hurdle is located at $64.42 (21-day sma) followed by $64.72 (10-day sma) and then $66.35 (high Feb.2).