WTI plummets below $62.00, fresh weekly lows

• WTI loses further momentum and breaks below $62.00.
• Stronger buck, easing geopolitical jitters behind the correction.
• EIA’s report coming up next.

Prices of the WTI are losing further ground on Wednesday, down nearly 2% well below the $62.00 mark per barrel.

WTI weaker on geopolitics, dollar

Prices of the barrel of the American benchmark for the sweet light crude oil are navigating the negative territory for the third consecutive session on Wednesday. Crude oil remains under heavy pressure despite printing fresh multi-month tops in the $65.70 region earlier in the Asian session (levels last traded in April 2019.

Diminishing concerns in the Middle East plus traders’ reassessment of the real potential supply disruptions stemming from the US-Iran conflict have been weighing on prices in past sessions, pouring cold water over almost any bullish attempt. Wednesday’s spike to the vicinity of $66.00 came after Iran attacked two US military bases in Iraq; however, the bull run quickly die off and prices reversed direction.

In the data space, the API reported late on Tuesday another drop in US crude oil supplies, this time by nearly 6M barrels during last week. Later today, the DoE will publish its official report on US crude oil inventories.

WTI significant levels

At the moment the barrel of WTI is losing 1.43% at $61.84 and a break below $61.33 (low Jan.8) would open the door to $61.18 (2020 low Jan.2) and then $60.00 (psychological level). On the upside, the next hurdle aligns at $65.66 (2020 high Jan.8) seconded by $66.60 (2019 high Apr.23) and finally $67.95 (high Oct.29).