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  • EIA’s weekly report reveals a less-than-expected increase in US crude oil stocks.
  • Russia voices commitment to work with OPEC  on output cuts.

Crude oil gained traction in the last hour after the weekly data published by the Energy Information Administration (EIA) showed a less than expected increase in the crude oil stocks in the United States. After moving sideways for the majority of the day below the $56 mark, the barrel of West Texas Intermediate rose sharply and was last seen trading at $56.95, adding 3.35% on a daily basis.

The EIA said crude oil stocks rose by 1.4 million barrels last week to come in below the market expectation of 1.54 million barrels. “Total products supplied over the last four-week period averaged 21.3 million barrels per day, up by 0.2% from the same period last year,” the EIA added in its press release.

OPEC and trade headlines to drive oil prices in coming weeks

Meanwhile, Russian President Vladimir on Wednesday said that Russia wants the energy market to be predictable and balanced and added that they will continue to work with Saudi Arabia and  the Organization of the Petroleum Exporting Countries (OPEC) on output curbs to provide additional support to crude oil prices.

On the other hand, the uncertainty surrounding the US-China trade dispute could continue to cap crude oil’s gains in the near-term. US President Trump on Tuesday reiterated that they will hike tariffs if they fail  to reach a deal with China and the US Senate approved the Hong Kong human rights bill to hint at a further escalation in geopolitical tensions.  

Technical levels to watch for