WTI: Bulls await fresh impetus to take-out $15 ahead of EIA
|- WTI on the road to recovery, a break of $15 is critical for further upside.
- Overdone storage fears, upbeat API data and USD weakness offer support.
- Next of relevance remains the US Q1 growth, EIA data and FOMC.
WTI (June futures on Nymex) consolidates the 15% recovery rally on the 14 handle amid a cautiously optimistic market environment, as the bulls take a breather ahead of the critical US Q1 GDP report, EIA weekly Crude Stocks data and the FOMC decision.
The black gold extends its three-day winning streak on Wednesday, as markets believe that the fears surrounding the scarce global storage capacity were overdone.
Also, a ray of hope emerges for the oil market on the demand front, as some of the major global economies rolled out plans to ease the coronavirus lockdowns that stunted the economic growth and in turn oil’s demand growth outlook.
Adding to the bullish sentiment around the US oil, the latest data published by the American Petroleum Institute (API) showed a smaller-than-expected rise in the US crude inventories. The US crude stockpiles by 10 million barrels to 510 million barrels in the week to April 24 against expectations for a build of 10.6 million barrels.
The barrel of WTI also benefits from a broadly weaker US dollar, in light of upbeat market mood and dismal US macro data. A weaker greenback makes the USD-denominated oil more attractive to foreign buyers.
Meanwhile, traders take cues from the latest comments from the Russian Energy Minister Alexander Novak heading into an event NA session. Technically, buyers need to take-out the 5-DMA resistance at 14.54 in order to extend the ongoing recovery momentum towards $15 mark. To the downside, immediate support is seen at the daily pivot point of 12.03. Further south, the 10 level could test the bears’ commitment.
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