Home WTI flashes fresh 14-week top following surprise API draw, geopolitical catalysts
FXStreet News

WTI flashes fresh 14-week top following surprise API draw, geopolitical catalysts

  • WTI stays strong as a surprise draw in the API inventories suggests the decline in the official stockpile figures.
  • The broad weakness of the USD, US-China trade optimism and geopolitical tension surrounding the US, North Korea and the Middle East might also have played their role.
  • EIA data, Baker Hughes US Oil Rig Counts are in the spotlight.

WTI takes the bids to $61.80 by the press time of early Friday morning in Asia. The energy benchmark cheers the nearness to the signing of the phase-one deal between the US and China whereas surprise draw in API inventories and other geopolitical tensions add to the upside.

The American Petroleum Institute (API) said that the US oil inventories declined 7.9 million barrels for the week ending December 20 versus the previous rise of 4.7 million barrels. The numbers suggest a higher than expected drop of -1.833 million barrels in the official Energy Information Administration  (EIA) data, up for publishing later today.

The US and China are finally close to the signing of the phase-one agreement, as confirmed by the US President Donald Trump and Chinese diplomats off-late. The same has propelled the market’s risk-taking capacity and boosted the commodities recently.

The US and Saudi Arabian alliance is on a seizing spree as it has captivated nearly 11 oil ships near the Jazan Port, as said by the Yemeni Oil company. The same has largely been criticized by the Egyptian President and indicates a rift between the US and the Middle East. The black gold has recently benefited from the global oil producers’ accord to extend the supply cut.

Oil traders will now follow weekly numbers of the EIA inventories and Baker Hughes US Oil Rig Counts for fresh impulse. While the EIA data is likely to post -1.833 M figure versus -1.085M prior, Baker Hughes registered 685 active rigs during the last release.

 Technical Analysis

A sustained break beyond the eight-month-old falling trend line, at $60.85 now, opens the door for the price rally towards September month high near $63.15.

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.