WTI reclaims $100.00 ahead of the release of EIA stockpiles, China’s lockdown measures ease
|- WTI has retreated from $92.65 on easing demand worries in China.
- API has printed a solid build-up of US oil inventories at 7.8 million barrels.
- The impact of additional oil supply by the US and IEA seems to fade away.
West Texas Intermediate (WTI), futures on NYMEX, has recaptured the $100.00 mark as the Chinese administration has lifted some of its lockdown curbs, which were imposed to contain the Covid-19 epidemic in Shanghai city. The black gold has witnessed a sheer upside after sensing a decent buying interest from Monday’s low at $92.65.
It seems that the announcement of additional oil supply by the US administration and International Economic Agency (IEA) out of their Strategic Petroleum Reserve (SPR) has faded away. Earlier, the US administration and IEA announced an oil supply of 180 and 60 million barrels respectively. To offset the cut of one million barrels of oil per day (bpd) from Russia due to sanctions imposed by Western leaders, the collective leakage of 1.3 million bpd by the US administration and IEA may bring price stability.
Also, the WTI bears failed to capitalize on the solid build-up of oil stocks reported by the American Petroleum Institute (API). On Tuesday, the API reported that the US oil inventories rose by 7.8 million barrels, outperforming the previous figure of 1.08 million barrels.
For further guidance, the oil inventory report from the Energy Information Administration (EIA) will hold significant importance. The oil inventories are likely to land at 1.367 million barrels against the previous print of 2.421 million barrels.
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.