WTI futures depreciate beyond 1% to hit session lows below $83.00.
Higher than expected US stocks have increased negative pressure on oil prices.
WTI: testing support at $82.50.
Front-month WTI prices have extended their reversal from multi-year highs at 85.35 on Monday. Crude prices have depreciated more than 1% so far today, reaching session lows at $82.50.
Commercial inventories of crude oil increased in the US by 4.3 million barrels last week, according to data released by the US Energy Information Administration. These figures represent a much higher increment than the 1.91 million barrels anticipated by market analysts and have added negative pressure on crude prices.
Oil prices have surged about 35% over the last two months, boosted by concerns that the global increase in demand due to the post-pandemic recovery will cause an energy crunch. Beyond that, the Organization of Petroleum Exporting Countries remains reluctant to increase supply, which has prompted some analysts to forecast crude prices near $100 by the end of the year.
WTI futures have accelerated their reversal on Wednesday, retreating below $83.00 to seek support at 82.50. Below here, the next potential targets might be at 81.75 (October 22 low) and $80.80 (October 20 and 21 lows).
Alternatively, a bullish reaction from current levels would send the pair to retest intra-day highs at $84.20 ahead of October 25 high at $85.35, which would open the path towards the 90.00 psychological area.