WTI back on the bids above $ 65 mark, EIA data eyed

Finds support from lower US inventories, OPEC disagreement on output hike.
Libyan supply disruption also underpins the black gold.
Awaits fresh impetus from the EIA crude stockpiles data ahead of Friday’s OPEC meeting.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) is seen gaining recovery momentum last hour, but the bulls seek to the take-out the key $ 65.50 barrier convincingly for further upside.

The renewed uptick in oil prices can be mainly attributed to the division amongst the OPEC and non-OPEC producers on the output policy, with Saudi and Russia looking committed to ramping up production while Iran, Oman, Venezuela and Nigeria among others remain uncertain about their support for an output hike.

More so, waning concerns over the US-China trade dispute combined with a drawdown in the US crude inventories continue to lend support the barrel of WTI. The latest data from the American Petroleum Institute (API) showed the US crude inventories fell by 3 million barrels to 430.6 million barrels in the week to June 15.

Further, the loss of storage capacity in Libya also helps keep the sentiment buoyed around the black gold. Traders said a drop in Libyan supplies is due to the collapse of an estimated 400,000-barrel storage tank, as cited by Reuters.

The focus now remains on the US Government official crude stockpiles data due to be published by the Energy Information Administration (EIA) later on Wednesday for fresh momentum on the prices. However, the main event risk this week remains Friday’s meeting between the OPEC and its allies in Vienna on the output policy.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.