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  • Weaker amid a big build in the US API crude stockpiles.
  • USD selling, Venezuela political crisis and tighter supplies cap losses.
  • Attention turns to US ISM manufacturing PMI, EIA crude stocks data.

Fresh bids emerged just ahead of the 63 handle in the European session, allowing a tepid bounce in WTI (futures on Comex) near the 63.50 levels, as markets await the key US macro data and EIA crude inventories for the next direction.

The black gold remains under pressure so far this Wednesday, mainly in response to the bearish US weekly crude stocks report published by the American Petroleum Institute a day before that showed a big build in the US crude inventories. According to the API data, the US crude stocks rose by 6.8 million barrels to 466.4 million barrels in the week to April 26.

However, the losses appear capped amid increased expectations of tighter global supplies, with the US sanction tightening over Iran while the Venezuelan political crisis intensifies. Meanwhile, the prices also continue to derive support from Tuesday’s comments from the Saudi Oil Minister Al-Falih, as he said that the global oil output cuts could be well extended until the end of this year.

The barrel of WTI also remains somewhat underpinned by broad US dollar weakness heading into the US ADP jobs, ISM manufacturing PMI and FOMC decision. All eyes now remain focused on the US macro releases and the EIA crude inventory report for fresh trading impulse.

WTI Technical Levels