WTI testing highs near $51.80 on EIA
|Crude oil prices are extending the rally on Wednesday, pushing the West Texas Intermediate to fresh daily highs below the $52.00 mark per barrel.
WTI bid on another EIA draw
Prices for the black gold keep the upbeat tone today after the EIA’s report showed US crude oil supplies decreased by 4.432 million barrels in the week ended on May 19, more than expected initially.
In addition, Weekly Distillates Stocks dropped by 0.485 million barrels, while Gasoline Inventories diminished by 0.787 million barrels.
Further data saw supplies at Cushing dropping by 0.741 million barrels and US oil production increased to 9.320 million barrels.
The rally in crude prices saw the barrel of WTI gaining around 18% since May lows around $43.70 to current levels north of the $51.00 mark, always backed by hopes of an extension of the OPEC output cut deal. The decision on the matter will come at the cartel’s meeting on Thursday, with consensus expecting either a 6-month or a 9-month extension.
WTI levels to consider
At the moment the barrel of WTI is up 0.51% at $51.73 and a break below $51.07 (100-day sma) would aim for $50.57 (low May 23) and finally $49.94 (61.8% Fibo of the April-May drop). On the flip side, the next hurdle lines up at $52.65 (high Apr.18) and then $53.76 (high Apr. 12).
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.