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  • Encouraging API data and stimulus optimism boost WTI.
  • WTI looks to extend the longest rally in two years.
  • Next of note remains the US CPI and EIA inventory data.  

WTI (futures on NYMEX) has regained control above $58.50 in the European session, having eased to test the $58 mark in the Asian trades.

The sentiment around the black gold remains underpinned by a sharp drop in the US stockpiles, as reported by the American Petroleum Institute (API) late Tuesday.

The API data showed that the US crude inventories fell by 3.5 million barrels in the week to Feb. 5 to about 474.1 million barrels.

Also, the US stimulus-driven optimism over the global economic recovery and hopes of a rise in the demand for oil and its products continue to offer support to the oil bulls.

Meanwhile, Saudi Arabia’s voluntary output cuts take effect this month, which also remains supportive of the recent surge in the WTI barrel.

Markets seem to have shrugged-off the Energy Information Administration’s (EIA) monthly report, which suggested that the US oil production is seen rising in the second half of 2021.

Looking ahead, the US CPI data is eagerly awaited for any impact on the US dollar-denominated oil while EIA weekly crude stockpiles will be also closely eyed.

WTI technical levels