Oil on the high side as US crude inventories decline again, WTI looking for $70

• Crude barrels see support from a steeper decline in US  inventories than expected.
• Pressure are  easing from the US-China trade spat as oil traders hope infrastructure spending in China offsets possible declines in US  crude demand.

Crude oil prices are seeing gains on Wednesday as expectations of a buildup in US supplies are easing off after data showed a surprise drawdown in US inventories on Tuesday. WTI crude barrels are trading near 69.60 after rebounding from yesterday’s low of 68.35.

According to the American Petroleum Institute (API), crude inventories in the US fell 3.2 million barrels last week, helping to drive a floor underneath oil prices, while markets were expecting a drawdown of only 2.3 million barrels.

US crude imports also declined last week by 249 thousand barrels per day, bringing the total to 8.3 million bpd. Reports that increased infrastructure spending from China will also help to reduce concerns of declines in US demand for crude, helping to alleviate pressure on WTI prices and further buoying US crude barrels.

WTI levels to watch

American oil costs have flattened out above the recent low of 67.25 after declining from a recent high of 75.35, but bulls are having a hard time driving prices beyond the last swing high near 71.70, with further downside pressure from the July 6th low of 72.20.