WTI flirts with 6-week lows in the sub-$70.00 zone
- Prices of the WTI breaks below the $70.00 mark.
- Recession fears continue to weigh on sentiment.
- The EIA will report on crude oil supplies later on Wednesday.
Prices of the West Texas Intermediate (WTI) extended its sell-off to levels last seen back in late March, dropping below the key $70.00 mark per barrel on Wednesday.
WTI hurt by recession concerns ahead of Fed
WTI prices have lost nearly 10% since Monday and retreated for the third session in a row in response to unabated fears surrounding a probable recession in the US economy, which could eventually impact the demand for the commodity.
These fears appear to have been bolstered by the imminent FOMC event, where another quarter-point rate raise is already priced in. The focus of attention, in the meantime, is expected to shift to Powell’s press conference and what the Committee might do in the next few months regarding the rate path.
Adding to the sour mood among traders are disappointing results from the Chinese manufacturing and services sector, which were published over the weekend.
Later in the NA session, the EIA will report on US crude oil inventories in the week ending April 28th.
WTI significant levels
At the moment the barrel of WTI is down 3.19% at $69.22 and the breach of $66.86 (low April 24) would open the door to $64.41 (2023 low March 20) and then $61.76 (monthly low August 23 2021). On the upside, the next hurdle comes at $76.92 (high April 28) followed by $79.14 (weekly high April 24) and finally $81.55 (200-day SMA).