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  • Crude inventories rose by 1.2 million barrels.
  • OPEC is reportedly not ready to boost output.
  • Saudi Arabia is fine with Brent prices above $80.

After advancing to a fresh 5-day high at $70.40, the barrel of West Texas Intermediate stayed in a consolidation phase near $70 but recorded modest losses in the post-settlement trade after the weekly report published by the American Petroleum Institute showed a larger-than-expected in crude oil inventories in the United States. As of writing, the barrel of WTI was still up 1.15% on the day while trading at $69.50.

According to the API, crude oil inventories increased by 1.2 million barrels in the week ending September 14 to surpass Reuters’ estimate fır a decrease of 2.7 million barrels. Further details of the publication showed that refinery crude runs fell by 1.5 million barrels in the same period. With the API report out of the way, investors will be waiting for tomorrow’s EIA data.

Earlier in the day, Bloomberg claimed that unnamed Saudi sources told them that Saudi Arabia was comfortable with Brent prices rising above $80 per barrel in the short-term. Meanwhile, citing OPEC sources familiar with the matter, Reuters reported that the organisation had no near-term plan to make changes on the production levels and producers would discuss how to share the previously agreed output increase during the OPEC, non-OPEC ministers meeting in Algeria on Sunday.  

Technical levels to consider

On the upside, $70 (psychological level) remains as a critical resistance ahead of  $71.35 (Sep. 4 high) and $72.90 (May 22 high). Supports could be seen at $68 (Sep. 14 low), $67 (Sep. 6 low) and $65.70 (Aug. 13 low).

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