WTI taps on $ 58, strongest since July 2015
|- Concerns over Canada’s pipeline disruption to the US support.
- USD weakness further underpins.
- Eyes on US EIA inventory report.
WTI (oil futures on NYMEX) extended its upbeat momentum into a second straight session on Wednesday, rallying hard to fresh multi-month highs on the back of drawdown in US crude stockpiles and supply disruption concerns.
WTI: Will it take-out 58 handle?
The black gold has entered a phase of upside consolidation, as the sentiment remains underpinned by a fall seen in the US crude inventories by 6.4 billion barrels in the week to Nov. 17, as revealed by the API report released late-Tuesday.
Moreover, oil prices also derived support from the latest reports of a cut in the Canadian oil deliveries to the US amid a pipeline shutdown that links Alberta’s oil sands to the US refineries, after a 5,000-barrel spill in South Dakota.
However, further upside appears to lack follow-through, as the bulls take a breather before the release of the official US government crude stockpiled data due later in the NA session.
At the time of writing, WTI jumps +1.60 to $ 57.73, while Brent rises +0.42% to $ 62.66.
WTI Technical Levels
Higher-side levels: $ 58 (round figure), $ 58.28 (classic daily R3), $ 58.50 (psychological levels)
Lower-side levels: $ 56.87/82 (daily pivot/ 5-DMA), 56.39/19 (10 & 20-DMA), 56 (zero figure)
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.