Commodity Market: US Crude Oil extends losses on US crude inventory build, COVID-19 resurgence in Asia

Futures on US West Texas Intermediate Crude Oil retreated for a third straight trading day on Thursday, as an increase in US oil inventories added to demand concerns amid rising new coronavirus infections in parts of Asia, including India where more movement restrictions have been imposed.

An official report by the US Energy Information Administration showed on Wednesday that crude oil inventories had risen by 1.321 million barrels during the week ended on May 14th, or at a slower rate compared to what analysts on average had anticipated – an increase by 1.623 million barrels.

Meanwhile, US gasoline inventories dropped by 1.963 million barrels last week, which has been the sharpest fall since early March. A consensus of analyst estimates had pointed to a much slower drop – by 0.886 million barrels.

“U.S. gasoline demand is holding up well ahead of the driving season,” ANZ Research wrote in an investor note.

“U.S. airport footfalls increased to 1.85 million, boding well for jet fuel demand,” ANZ noted.

On the other hand, “India’s falling fuel demand is likely to worsen in May due to movement restrictions,” ANZ said.

India’s daily death toll as a result of the pandemic reached a record 4,529, while total confirmed COVID-19 cases now exceeded 25.772 million.

As of 9:15 GMT on Thursday WTI Crude Oil Futures were retreating 1.70% to trade at $62.27 per barrel, while moving within a daily range of $62.14-$63.95 per barrel. Yesterday the commodity slipped as low as $61.95, or its weakest price level since April 27th ($61.91 per barrel). WTI Crude Oil Futures have retreated 1.81% so far in May, following a 7.47% surge in April.

At the same time, Brent Oil Futures were losing 1.76% on the day to trade at $65.48 per barrel, while moving within a daily range of $65.30-$67.16 per barrel. Today’s low has been Brent Oil’s weakest price level since April 26th ($64.58 per barrel). Brent Oil Futures have retreated 1.68% so far in May, following a 5.74% surge in April.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $63.55
R1 – $65.15
R2 – $66.95
R3 – $68.55
R4 – $70.15

S1 – $61.75
S2 – $60.15
S3 – $58.35
S4 – $56.55

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $66.80
R1 – $68.29
R2 – $69.92
R3 – $71.41
R4 – $72.89

S1 – $65.17
S2 – $63.68
S3 – $62.05
S4 – $60.41