WTI looks to extend the bounce above $24 mark amid coronavirus gloom

• US fiscal stimulus measures fail to revive oil demand optimism.
• Bearish EIA oil supply data weighs down on WTI.
• Losses in oil likely capped by broad US dollar weakness.

WTI (oil futures on NYMEX) trades with size-able losses just shy of the 24 level, as the sentiment remains hurt by escalating concerns over the oil demand growth, in the face of the coronavirus outbreak induced government lockdowns across the globe.

The concerns over the economic costs of the shutdowns and its impact on the oil demand growth continue to outweigh the optimism from the massive $2 trillion stimulus package agreed on in the US.

This remains the main catalyst behind WTI’s slide from the Asian session highs of $24.65 to the daily low of $23.41 reached an hour ago. At the press time, the barrel of WTI trades at $23.90, trying hard to extend the recovery above the 24 handle.

The black gold keeps its recovery mode intact, mainly helped by broad-based US dollar weakness, triggered by the sell the fact trading following the US Senate passage of the coronavirus rescue package.  

Despite the latest leg up, the downside remains more compelling amid a rise in the US crude stockpiles and the virus-induced economic concerns. The US Energy Information Administration (EIA) said on Wednesday, US crude inventories rose by 1.6 million barrels last week, marking the ninth straight week of increases.

WTI technical levels to consider