​WTI Breaks Below $41.0 As EIA Cuts Demand Forecast

WikiFX News (13 Nov.) - On Thursday, WTI saw its rally just shy of the intraday high of $42.18 and witnessed choppy downsides before breaching below the support at $41.0 to the intraday low of $40.61, notching two consecutive days of drops. Oil prices may find the uptrend halted in the short term.

This Thursday, the International Energy Agency (EIA) cut its 2020 global oil demand forecast in the monthly report, saying it did not expect the prospect of a coronavirus vaccine significantly boosting demand until the full roll-out.

In addition, the US is expected to impose tighter lockdown restrictions amid the surging infections, which will weigh on crude demand.

Headlines stated on Thursday that the Trump administration had stopped talks on the economic stimulus package that was promised to be larger. Markets expect the US to approve a scaled-back stimulus package within a longer period, another hamper to oil prices.

With prices falling to an intraday low of $40.61 on Thursday, a short-term breach below the support in the $39.30-$40.0 area may drag oil down to $38.0.

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Chart: Trend of WTI Crude Oil