WTI: Buyers remain present despite API stock build

Geopolitics dominate over the increase in the private inventory report.
EIA numbers will be in focus to avail further upside beyond $60.00.

Anil Panchal FXStreet

WTI is taking bids around $60.00 during the early Asian session on Wednesday. The energy benchmark rose nearly 2.0% on Tuesday as geopolitics play their role at Venezuela. Buyers gave little importance to the weekly API crude stocks build, await official figures to confirm the increase.

Not only second in a month power blackout restricting major exports from Venezuela but recent news reports from CNBC signaling geopolitical tensions in the nation between the US and Russia also pleased energy bulls off-late.

Also, on-going supply-cuts from the OPEC+ alliance coupled with the US sanctions on Iran and Venezuela become additional reasons for the WTI crude prices to remain firm.

The American Petroleum Institute (API) recently revealed results on its oil stock survey for the week ended on March 22. It said the oil inventories increased 1.9 million barrels in the latest week compared to the depletion of 2.13 million barrels registered earlier. Investors now await official figures from the Energy Information Administration (EIA), up for release at 02:30 PM GMT, for fresh impulse.

WTI Technical Analysis

FXStreet analyst Ross J Burland spots a bearish divergence on the daily chart with prices witnessing pullback from rising wedge resistance.

WTI was rejected at the rising wedges resistance but bulls have stepped back in and are testing the prior highs once again on the 60 handle. This is likely to be a tough area of resistance but on a break above trend line resistance and the 61.20s, bulls will have a green light to attack territory towards the 61.8% Fibo in the 63.60s, reviving prospects for the 70 handle. On the flip side, a break of the 50% Fibo and cloud support and thus trend line support at 54.50m will open a case for 50.50 as the 23.6% Fibo support structure.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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