- WTI trims gains to test $61 mark ahead of the US EIA data.
- Oil remains supported by Texas deep freeze-led output drop.
- The US dollar weakness also keeps the WTI bulls hopeful.
WTI (futures on NYMEX) is on a corrective decline from fresh 13-month highs of $62.27, seemingly driven by profit-taking, as the fundamentals remain supportive of the move higher.
However, reports that the OPEC and its allies (OPEC+) could ease oil supply restrictions from April, in the wake of the recovery in prices, could be prompting the investors to reassess the extend of WTI’s rally.
The black gold refreshed yearly highs as a historic winter storm has swept Texas and the surrounding regions, snapping a million barrels of crude production, according to Wood Mackenzie analysts.
A bigger-than-expected draw in the US crude oil inventories also intensified the supply concerns, supporting the recent rise in the WTI barrel.
The latest data published by the American Petroleum Institute (API) showed that the US crude oil stocks dropped by 5.8 million barrels in the week to Feb. 12 vs. expectations for a draw of 2.4 million barrels.
Looking ahead, the retreat in the black gold could be limited by broad-based US dollar decline, although the US Energy Information Administration (EIA) weekly crude stockpiles data will be eyed for fresh trading directives.
WTI: Technical levels
“With the MACD signal staying green, WTI has a bit more gap above $62.00 before it hits the channel’s resistance line near $62.55. Meanwhile, an ascending trend line from January 31, at $59.60, adds to the downside filters even if the quote’s pullback moves, if any, break the stated channel’s support near $59.90,” FXStreet’s Analyst Anil Panchal notes.