WTI jumps above $57 after EIA stock report

• EIA says crude oil inventories decreased by 8.6 million barrels.
• USTR Lighthizer says it’s too early to predict the outcome of U.S.-China trade talks.
• Saudi energy minister says OPEC output cuts could be extended.

Crude oil preserved its bullish momentum on Wednesday and the barrel of West Texas Intermediate continued to erase Monday’s losses. As of writing, the barrel of WTI was trading at $57.10, up 25% on a daily basis.

Following yesterday’s API report, which showed a larger than expected draw in crude oil inventories in the U.S., today’s weekly EIA report revealed that crude oil stocks in the U.S. decreased by 8.6 million barrels in the week ending February 18 compared to analysts’ estimate for a build of 3.6 million barrels and provided a boost to oil prices.

Additionally, Saudi Arabian Energy Minister Khalid Al-Falih earlier today said that the market has been responding to output cuts and added that OPEC and its allies could opt out to extend the supply cuts when they meet in April. “OPEC and non-OPEC continue to play their role in balancing the oil market but sustaining that role requires timely investments, reliable supply, and appropriate spare capacity,” Al-Falih explained.

On the other hand, U.S. Trade Representative Lighthizer today said that it was too early to predict the outcome of the U.S.-China trade talks and stated that larger purchases of U.S. goods from China by themselves wouldn’t be enough for a deal.  

Technical levels