Search ForexCrunch
  • Today’s data from China showed crude imports hit record 9.61 million bpd.
  • The U.S. oil output reaches a new all-time high of 11.6 million bpd.

After starting the week under pressure and recording heavy losses, crude oil staged a modest recovery on Thursday and the barrel of West Texas Intermediate rose to $62.40. However, the WTI failed to continue to gather strength as markets stayed focused on the rising global oil supply. As of writing, the barrel of WTI was trading at $61.10, losing 0.8% on a daily basis.

Earlier today, the data from China, who is allowed to continue to import oil from Iran, revealed that crude oil imports in October rose to a record high of 9.61 million barrels per day to provide a short-term boost  to crude oil prices. On the other hand, the weekly report published by the EIA yesterday showed that crude oil stocks in the U.S. rose 5.8 million barrels and the output increased to 11.6 million barrels. At this rate, the United States has overtaken Russia as the world’s biggest oil producer.

Commenting on this data, “Once again, the U.S. has shown that when it is economic to do so, it can increase production at a greater pace than Saudi Arabia. This means that the price is today a greater solver to the crude oil balance than in the past when there was no solver apart from the supply policy of Saudi Arabia,”  Olivier Jakob, a strategist at Petromatrix, told Reuters.

Technical levels to consider

The initial support aligns  at $60.80 (daily low) ahead of $60 (psychological level/Mar. 8/9 low) and $58.40 (Feb. 13 low). On the upside, resistances are located at $62.40 (daily high), $63.15 (Nov. 7 high) and $64.10 (Nov. 5 high).