- WTI is trading around half a percent higher on Wednesday.
- There has now been a draw in both DoE’s and last night API inventory data.
WTI has ticked higher on Wednesday after another draw was noted in the Department of Energy (DoE) inventory weekly data. This time round:
Crude -10.612M vs expected +0.357mln.
Cushing +1.309M vs API reading of +1.144mln.
Gasoline +0.654M vs expected . -0.733mln.
Distillate +0.503M vs expected . -0.267mln.
The crude draw down expectations seem drastic but some of the consensus veiws would have changed after yesterday’s American Petroleum Institute’s (API) weekly reading of -6.929mln. On other news, Platts Oil Analysts soften their demand outlook over rising infections. They also noted that oil demand rebound by 2022 in may be in doubt and Japanese mobility slumps after infection spike. Reports like this could be what is keeping a cap on any price rises. The oil trading community is seriously worries about a second spike hitting demand,
WTI 1-hour chart
The hourly chart shows just how sticky the current price area is. There is a blue trendline near the consolidation and if this breaks it could indicate that prices are heading lower. Overall, the massive chart structure is a broadening pattern and these are very hard to trade. On the support side, the red horizontal line just under USD 41 per barrel is next up. Having said that the price is currently making higher high and higher low waves on this timeframe. A break to the green resistance line at USD 41.70 per barrel would be a one to keep an eye on for the trend continuation trade. For now, on the higher timeframes, WTI is looking pretty sideways a break of any of the key levels on this chart could clear things up.