- Crude oil prices gain traction following Tuesday’s consolidation.
- Indian oil minister urges OPEC+ to ease production cuts.
- Focus shifts to API’s Weekly Crude Oil Stock data.
Crude oil prices traded in a tight range on Tuesday and the barrel of West Texas Intermediate (WTI) closed virtually unchanged a little above $60.
Eyes on US API oil inventory data
However, with oil production coming to a halt in the US’ largest oil-producing state, Texas, due to a winter storm, WTI regained its traction on Wednesday and touched its highest level since January 2020 at $61.23. As of writing, WTI was trading at $60.90, gaining 1.3% on a daily basis.
Later in the session, the American Petroleum Institue’s (API) Weekly Crude Oil Stock report will be watched closely by the market participants. Production disruptions in the US are likely to cause another draw in crude oil inventories.
Meanwhile, Reuters reported on Wednesday that India’s oil minister voiced his concerns over the rising oil prices and urged OPEC+ to ease production cuts. This headline seems to have forced WTI to pull away from its 13-month highs.
On the other hand, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said on Wednesday urged producers to remain “extremely cautious” amid very high uncertainty. “Those who are trying to predict the next move of OPEC+, to those I say, don’t try to predict the unpredictable,” bin Salman added, pre Reuters.
Technical levels to watch for
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