West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices tumbled for the fifth consecutive day, and struck a near five-month low at $35.25, as investors fear of another global surge in coronavirus cases and a surprisingly large weekly build in U.S. crude stockpiles reported the previous day.
The market got the jitters mid-week by the Energy Information Administration’s reporting of a 4.3million-barrel rise in crude inventories for the week ended Oct. 23, against expectations for an increase of 1.23 million barrels.
Looking ahead, all eyes turn to the energy services firm Baker Hughes oil rig report today after last week the U.S. energy companies said the oil and gas rig count, an early indicator of future output, rose five to 287 in the week to Oct. 23, its highest since May.
The total rig count fell to a record low of 244 during the week ended Aug. 14, while oil rigs alone fell to a 15-year low of 172 in the same week, according to Baker Hughes data going back to 1940.
From a technical perspective, the bearish sentiment has increased since the bears crushed $38.00-30 which has now put $35.00-05 in the picture frame, with $34.15 viewed beneath with the resistance seen above at $37.55-75 with $40.00-25 capping.