- Oil catches some much-needed lift on US crude stocks declines.
- The week ahead still sees a major and tense OPEC meeting on the table.
Crude oil is catching some lift in Wednesday trading with WTI creeping into the $65/barrel handle as US inventories deliver a slight drawdown.
According to the American Petroleum Institute (API), US crude stocks declined by 15 million barrels into June 15th, bringing the total count to 430.6 million barrels.
A decline in US stocks is a welcome sign ahead of the upcoming OPEC meeting this week in Vienna, where Saudi Arabia’s plans to increase production limits in cahoots with Russia are expected to run into tense opposition from other OPEC members including Iran, Iraq, and Venezuela. Opposition within OPEC does not want to raise production limits for fear of another decline in oil prices hampering government coffers, while Saudi Arabia and Russia are looking to stabilize oil prices after a run up the charts that saw crude hit multi-year highs recently.
WTI levels to watch
US oil prices managed to stage a bounce this week after a rapid decline last Friday saw WTI crumple into 63.36 after lifting steadily into 66.80 for most of the week; with the technical bounce over oil has resumed drifting lower, though today’s lift sees crude challenging the key 65.00 handle once again, a level that has become familiar in recent weeks.
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