WTI retakes $70.00 and beyond, drops afterwards

• Crude oil prices climbed to daily highs above $70.00 on EIA report.
• WTI advances to multi-day peaks around $70.50 and drops later.
• US crude oil supplies decreased by more than 6.0 mbpd last week.

Prices of the barrel of the American reference for the sweet light crude oil are retracing the post-EIA spike to multi-day peaks to the mid-$70.00s and returned to the current $69.70 area.

WTI retakes $70.00 and beyond, drops afterwards

Prices of the barrel of the West Texas Intermediate briefly tested peaks in the $70.50 region in the wake of the latest EIA weekly report, although the up move proved to be ephemeral for the time being.

In fact, WTI accelerated the upside after the EIA reported US crude oil inventories went down more than initially estimated by 6.147 mbpd during the week ended on July 20.

Furthermore, Weekly Distillate Stocks dropped by 0.101 mbpd and Gasoline inventories decreased by 2.328 mbpd, well above expectations.

In addition, inventories at Cushing shrunk by 1.127 mbpd, adding to last week’s 0.860 mbpd drop.

In the meantime, crude oil prices are struggling to keep the upside momentum seen in the first half of the week amidst rising cautiousness among traders over the ongoing US-China trade war and the upcoming meeting between President Trump and European Commission’s J.C.Juncker.

Further out, the persistent weakness around the greenback is also collaborating with the up move in crude oil prices.

Later in the week, Baker Hughes will publish its weekly report on the US drilling activity. Yesterday, the American Petroleum Institute reported US crude oil supplies dropped more than initially expected by more than 3.160 mbpd, also adding to the upbeat tone in prices.

WTI significant levels

At the moment the barrel of WTI is down 0.50% at $60.56 and a breach of $69.24 (200-hour sma) would aim for $67.67 (100-day sma) and then $67.08 (low Jul.18). On the other hand, the next hurdle emerges at $70.50 (high Jul.25) followed by $71.55 (21-day sma) and then $72.80 (high May 22).