WTI clings to strong daily gains above $62 ahead of EIA report
|- WTI is rising sharply after Tuesday's decline, trades above $62.
- Investors await EIA's weekly Crude Oil Stocks Change data.
Crude oil prices regained bullish momentum following Tuesday's pullback. The barrel of West Texas Intermediate (WTI) posted a daily loss of 1.6% and closed at $61.18 after touching its highest level in more than a year at $62.97 on Tuesday. Ahead of the US Energy Information Administration's (EIA) weekly Crude Oil Stock report, the WTI is up 1.8% on the day at $62.30.
Eyes on EIA data
The weekly report published by the American Petroleum Institue (API) showed a surprise 1.02 million barrels increase in US crude oil inventories. However, the underlying details of the publication revealed that there was a much larger-than-expected draw of 4.5 million barrels in distillate fuels.
The EIA is expected to report a decline of 5.3 million barrels in oil stocks in the week ending February 19.
Meanwhile, oil producers in Texas are slowly returning to normal production levels following last week's disruptions due to bad weather conditions. Nevertheless, the oil output in the US remains well below its full capacity.
Citing IIR Energy, Reuters reported on Wednesday that the oil refiners in the US are expected to have 7.2 million barrels per day (bpd) of capacity offline for the week ending February 26.
Technical levels to watch for
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