WTI rebounds above the $37.00 mark ahead of API

• The barrel of WTI reclaims the $37.00 level on Wednesday.
• Despite the rebound, demand concerns persist among traders.
• The weekly API report is due later in the NA session.

Following a test of the boundaries of the $36.00 mark per barrel, prices of the American benchmark for the sweet light crude oil have managed to regain some composure and advance to the area above the $37.00 level on Wednesday.

WTI looks to data

Prices of the West Texas Intermediate plummeted to fresh 3-month lows near the $36.00 mark per barrel on Tuesday, always on the back of renewed and strong concerns over the demand for crude oil.

Indeed, demand jitters resurfaced as of late, particularly in response to the apparent second wave of coronavirus cases across the globe. Also adding to ongoing signs that the demand is losing steam, Saudi Arabia’s Aramco cut prices for its reference barrel for the Asian markets on Tuesday, while IEA’s officials also suggested that the recovery in oil demand appears to be faltering.

In the docket, the API will report on the US crude oil stockpiles later in the NA session, while it will be the EIA’s turn to report on US crude oil supplies on Thursday. Driller Baker Hughes is also expected to publish its weekly oil rig count on Friday.

WTI significant levels

At the moment the barrel of WTI is gaining 1.83% at $37.40 and faces the next hurdle at $40.85 (200-day SMA) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3). On the downside, a breach of $36.15 (monthly low Sep.8) would aim for $34.38 (low Jun.15) and finally $30.73 (low May 22).