- WTI capped following private data shows a surprise build in headline crude inventory.
- WTI is currently trading at 62.56 and above the 200-DMA.
West Texas Intermediate crude prices travelled between a range of $61.62 and $62.73 overnight, defying gravity and took on the 200-DMA as fundamentals help the case for the bull’s favour. As for futures, the May delivery on the New York Mercantile Exchange added 99 cents, or 1.6%, to close at $62.58 being the highest finish since November the 5th.
OPEC and other major oil producers, including Russia, have pledged to curb crude production by around 1.2 million barrels a day from October levels for the first half of this year to prop up prices, but it won’t be too long that Trump voice his disappointments in the price of oil again and it may only take a stalling in progress in trade talks between Beijing and the US or any additional signs that the Chinese economy is slowing to curb the bulls progress.
In recent trade, the price has been capped in its advance following private data showing a surprise build in headline crude inventory:
- Crude +3.0MM (est -0.4MM)
- Gasoline -2.6MM (est -1.5MM)
- Distillate -1.9MM (est -0.5MM)
- Cushing +18K
WTI levels
Meanwhile, daily stochastics still lean with a bearish bias and the 61.8% fibo is the next hurdle for the bulls, located in the 63.70s meeting Jan 2018 support – a potential strong level of resistance. On the downside, $57.80 is a key level on a correction and a break there would opens the case for a continuation of the bear trend that would target below the $42 handle and late Dec lows.
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