WTI lower, challenges $42.00 ahead of EIA

Crude oil prices have resumed its downside on Wednesday, with the West Texas Intermediate coming down to test the $42.00 neighbourhood.

WTI now looks to EIA’s report

Prices for the WTI are navigating the lower bound of the recent range after the API reported the biggest build in crude oil stockpiles in 3 months on Tuesday, followed by an almost 4-million barrels draw in gasoline inventories.

Adding to the downside, Saudi Arabia said it has boosted its oil production to an all-time high of nearly 10.7 million barrels in July, in order to meet its increasing domestic demand during the summer.

Ahead in the session, EIA’s weekly report on inventories is due, with market consensus expected a decrease of more than 1 million barrels during last week.

WTI levels to consider

At the moment the barrel of WTI is losing 1.01% at $42.34 facing the next support at $39.26 (low Aug.2) ahead of $37.61 (low Apr.18) and finally $35.24 (low Apr.5). On the upside, a breakout of $43.39 (high Aug.8) would aim for $45.00 (100-day sma) and then $46.93 (high Jul.12).