WTI Oil Retreats As U.S. Domestic Production Jumps To 12.1 Million Bpd

WTI oil is under pressure as crude inventories rise by 3.9 million barrels.
Natural gas remains under strong pressure as traders worry that demand would decline due to Tropical Storm Nicole.
Copper continues its attempts to settle above the key $3.70 level.

WTI Oil Remains Under Pressure After EIA Report

WTI oil gained additional downside momentum after the release of the EIA Weekly Petroleum Status Report, which indicated that crude inventories increased by 3.9 million barrels. Analysts expected that crude inventories would grow by 1.36 million barrels.

Total motor gasoline inventories declined by 0.9 million barrels, while distillate fuel inventories decreased by 0.5 million barrles. U.S. domestic oil production increased from 11.9 million bpd to 12.1 million bpd. This increase may serve as a significant negative catalyst for oil markets.

Currently, WTI oil is moving towards the support level at $86.20. If WTI oil declines below this level, it will head towards the next support at $85.00. A successful test of the support at $85.00 will push WTI oil towards the support at $83.50.

On the upside, the nearest resistance level for WTI oil is located at $87.75. If WTI oil climbs back above this level, it will head towards the next resistance at $88.50. A move above the resistance at $88.50 will open the way to the test of the resistance at $90.00.

Natural Gas Pulls Back As Tropical Storm Nicole May Hurt Demand

Natural gas declined towards $5.80 as the strong pullback continued. The Tropical Storm Nicole may hit demand, which is bearish for natural gas markets.

In case natural gas settles below the $5.80 level, it will head towards the next support level at $5.55.

Gold Pulls Back As Dollar Rebounds

Gold made an attempt to settle above the resistance at $1715 but lost momentum and started to move lower as the U.S. dollar rebounded against a broad basket of currencies.

Other precious metals were also hit by profit-taking after the recent rally. Silver faced resistance at $21.60 and declined towards the support at $21.25. Platinum moved back towards the psychologically important $1000 level, while palladium settled below $1900.

Copper Tests Resistance At $3.70

Copper markets continued to move higher today, and it looks that traders bet on a rebound of demand in China.

Currently, copper is trying to settle above the important $3.70 level. If case this attempt is successful, copper markets will have a good chance to develop a strong and sustainable upside trend.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.

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