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  • WTI goes into consolidation after the latest rally.
  • API data showed from the US showed a large decline in crude oil stocks.
  • Focus shifts to EIA’s weekly Crude Oil Stocks Change data.

After closing the first two days of the week in the positive territory and gaining more than 2% in that period, crude oil prices continued to push higher on Wednesday. The barrel of West Texas Intermediate (WTI) touched its highest level since October 2018 at $72.80 and seems to have gone into a consolidation phase. As of writing, WTI was losing 0.3% on the day at $72.20.

Eyes on EIA report

In addition to improving energy demand outlook with major economies continuing to ease coronavirus-related restrictions, the large decline in US crude oil stocks provided a boost to WTI. The American Petroleum Institute (API) reported on Tuesday that oil inventories in the US declined by 8.5 million barrels in the week ending June 11.

Later in the session, the US Energy Information Administration’s (EIA) weekly Crude Oil Stocks Change data will be looked upon for fresh impetus.

On the other hand, Iran and the US are expected to continue talks on the 2015 nuclear accord in Vienna on Saturday, which could have significant implications on the global oil supply and impact oil prices.

Technical levels to watch for