- WTI ticks up on upbeat industry stockpile data.
- Weaker US dollar and OPEC demand forecast join geopolitical worries from Iran to favor the energy buyers.
- EIA inventories, US dollar moves will be the key to watch.
Having flashed the strongest gains in two weeks, WTI remains positive around $60.50 amid the initial Asian session trading on Wednesday. In doing so, the energy benchmark respects a higher than the previous draw in weekly stockpile data from the American Petroleum Institute (API) as well as the US dollar weakness. Also supporting the black gold could be the geopolitical worries emanating from Iran.
API weekly crude oil stock for the period expired on April 09 marked a higher than -2.618M previous draw to -3.608M on Tuesday. The energy benchmark benefited from the stock as the supply crunch is likely to be met with a higher demand amid economic recovery.
The Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand growth in 2021 to 5.95 million barrels per day (bpd) from 5.89 million (bpd) in the previous report, per Reuters.
Elsewhere, the US dollar index (DXY) dropped to the fresh three-week low following upbeat US inflation figures and strong bond auction, not to forget the fresh coronavirus (COVID-19) vaccine fears after blood clotting issues with the Johnson & Johnson jabs.
It should be noted that fears of a 60% increase in Uranium enrichment by Iran and the following global repercussions are also providing background support to the black gold.
Moving on, the weekly official inventory data from the Energy Information Administration (EIA), expected -2.154M versus -3.522M prior, will be crucial but major attention will be given to the risk catalysts and the US dollar moves for fresh impulse.
Technical analysis
A clear break above a downward sloping trend line from March 08, around $60.35-40, becomes necessary for oil bulls to stay hopeful.
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