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  • Increase in stockpiles confronts supply limiting catalysts.
  • Optimism surrounding the US-China trade deal also plays its role.

WTI is taking the bids around $63.50 during the early Asian session on Thursday. While increasing stockpile support energy sellers, political hostilities in Venezuela, production problems in Libya and the US sanctions on Iran limit the black gold’s decline.

On Wednesday, the Energy Information Administration (EIA) released the US crude oil stock report for the week ended on April 26. The data revealed that the inventories rose to the highest levels since September 2017 with an increase of 9.9 million barrels.

While EIA numbers signal supply increase, increasing political problems at Venezuela disturbs the oil output from an OPEC member.

Also adding to the output limiting factor could be a power outage at Libya and the US sanctions on Iran.

Furthermore, the US-China trade talks are also positive to energy prices as China is the world’s largest commodity user.

Investors now aim for Friday’s monthly employment data and weekly release of Baker Hughes US rig counts for fresh direction.

While the US jobs report is expected to flash mixed signals, the US rig counts shed 20 marks, the biggest in three months, to 805 for the week ended on April 26.

Technical Analysis

Although $64.00 and $64.70-80 are likely nearby resistances to watch, buyers will seek breaks of $65.60 and $66.60 for the additional rise.

On the downside, $62.50, $61.70 and 200-day simple moving average (SMA) around $61.00 can entertain sellers.