For the second consecutive day, prices of WTI crude oil have been declining, testing the important psychological level of $80 per barrel on Thursday. Despite being propped up by OPEC+ production cuts, the commodity remains on the defensive amidst profit-taking sentiment and renewed concerns of a global recession.
Despite these challenges, the third week of April appears to be ending with gains, as the commodity has been bolstered by the OPEC+ decision to reduce oil output and another larger-than-expected weekly drop in US crude oil supplies, according to the EIA’s report on Wednesday.
This week's strong performance of WTI crude oil has had a ripple effect on RBOB gasoline futures, with prices trading at levels not seen since October 2022, surpassing the $2.80 mark.
Later in the day, Baker Hughes is expected to report on US oil rig count for the week ending April 7 (592 prev.).
At present, the barrel of WTI is down 0.02% at $80.20. A breach of $79.05 (monthly low on April 3) could open the door to $66.86 (low on March 24) and then $64.41 (2023 low on March 20). Conversely, the next hurdle on the upside is located at $81.75 (monthly high on April 4), followed by $82.60 (2023 high on January 23), and finally $83.67 (200-day SMA).
