- Crude oil prices move higher and surpass $54.00.
- Prices of the WTI at shouting distance from YTD tops.
- US crude oil inventories rose less than expected last week.
Prices of the WTI keep pushing higher today to levels beyond the $54.00 mark per barrel following the smaller-than-expected build reported by the EIA.
WTI bid above $54.00/bbl
Prices of the barrel of West Texas Intermediate met further buying pressure on Wednesday and are now trading closer to yearly tops after US crude oil supplies went up by 0.919M barrels during last week.
In addition, Weekly Distillate Stocks shrunk by 1.122M barrels and Gasoline inventories dropped by 2.235M barrels, more than forecasted.
Further out, inventories at Cushing decreased by 0.145M barrels, adding to last week’s 0.190M barrels drop.
Moving forward, driller Baker Hughes will publish its weekly report on the US oil rig count on Friday.
What to look for around WTI
Crude oil prices are extending the multi-day sideline theme today. In the broader scenario, the OPEC+ agreement to curb oil output appears supportive of higher prices, in collaboration with supply concerns stemming from Libya and sanctions against Venezuela and Iran. However, extra gains in crude oil prices appear somewhat eclipsed by the probability of a global slowdown, uncertainty around the US-China trade war and omnipresent concerns over a supply glut led by increasing US oil production. Noteworthy, the Baltic Dry index – which gauges the costs of shipping raw materials – has retreated around 48% since last summer, somewhat reinforcing the idea of a global slowdown and putting crude oil on extra downside pressure.
WTI significant levels
At the moment the barrel of WTI is advancing 1.70% at $53.96 facing the next up barrier at $54.22 (2019 high Jan.21) seconded by $54.48 (monthly high Dec.4) and finally $58.00 (high Nov.18 2018). On the other hand, a break below $52.92 (10-day SMA) would aim for $51.40 (21-day SMA) and then $51.13 (low Jan.28).
Share
