WTI rebounds, turns flat above $50 on less-than-expected build in US crude oil inventories
|Crude oil prices gained traction in the post-settlement trade after the data from the American Petroleum Institute showed a smaller-than-expected build in U.S. crude oil stocks. As of writing, the barrel of West Texas Intermediate was trading at $50.30, only 5 cents below its opening level.
"Crude inventories rose by 1.4 million barrels in the week to Sept. 15 to 470.3 million, compared with expectations for an increase of 3.5 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 422,000 barrels, API said," Reuters reported.
The barrel of WTI could extend its gains on Wednesday as investors are likely to start pricing a similar reading in tomorrow's weekly crude oil stock report, which will be released by the Energy Information Administration (EIA). Moreover, OPEC is looking to continue with its efforts to balance the market. On Tuesday, Iraqi oil minister Jabar al-Luaibi said that some members of the organization were willing an extension to supply cuts until the end of 2018.
Technical levels to consider:
The initial hurdle for the barrel of WTI aligns at $50.80 (daily high) ahead of $52 (May 25 high) and $53 (psychological level). On the flip side, supports could be encountered at $49.20 (Sep. 18 low), $48.20 (20-DMA) and $47.35 (100-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.