- Supply concerns grab market attention despite upbeat manufacturing numbers.
- The API data will be in the spotlight to break $63.00 support and aim for $61.80 rest-point.
WTI trades little weak to $63.50 during early Asian sessions on Tuesday. The energy benchmark has been on a back-foot off-late as increasing challenges to global supplies regain market attention after early-month geopolitical issues fuelled the black gold to five-month highs.
In its monthly drilling productivity report released on Monday, the US Energy Information Administration (EIA) said that the US crude output from seven major shale formations is may rise by about 80,000 barrels per day (bpd) in May to a record 8.46 million bpd.
News was also doing rounds on Monday that OPEC+ alliance may increase its output to counter the US after Russian Finance Minister Anton Siluanov was spotted during the weekend.
Having witnessed upbeat trade and credit data from China during Friday, an increase in the US NY Empire State manufacturing index on Monday was also a positive sign for energy traders. As a result, today’s US industrial production for March month, +0.2% expected versus +0.0% prior, will also be watched closely.
Other than global manufacturing data and news developments, weekly crude oil stock from the American Petroleum Institute (API) may also entertain the crude followers. The previous reading suggests that the US oil inventories for the week ended on April 05 rose to 4.091 million barrels.
WTI Technical Analysis
While the break of $63.00 could trigger the back gold’s drip to $61.80 and $61.60, 200-day simple moving average (SMA) near $61.00 might challenge sellers then after.
Meanwhile, recent highs near $64.80 and October 2018 lows around $65.70/75 can restrict WTI’s short-term upside.