West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, moved lower on Tuesday, retreating from the key resistance level at $64.35-55 over concerns about rising COVID-19 issues worldwide.
(WTI) bulls fled as a pickup in new COVID-19 cases globally is putting a damper on sentiment after the World Health Organization warned that global coronavirus infections were edging toward their highest level in the pandemic.
News sources reported a global daily new case tally almost hit a record of more than 750,000 on Sunday and Monday, as India and Brazil remain hot spots.
The U.S. has averaged 67,175 new cases a day in the past week, up 4% from the average two weeks ago, but about 50% of U.S. adults have now received one shot of vaccine.
Meanwhile, according to an estimate released Tuesday by the American Petroleum Institute, U.S. crude inventories rose by 0.436 million barrels for the week ended April 15.
That compared with a draw of 3.6 million barrels reported by the API for the previous week.
Due Wednesday, the official government inventory report is expected to show weekly U.S. crude supplies fell by about 2.975 million barrels last week.
The bearish retaliation from the key resistance level at $64.35-55 now turns the attention to the support located at $61.40-60.
Beneath here exposes the levels of $59.80-95 to $57.30-60.