WTI climbs to fresh 2019 highs above $58 after weekly EIA report

EIA reports larger than expected draw in crude oil stocks.
Power outage in Venezuela weighs on exports.

Eren Sengezer FXStreet

Crude oil prices received an additional boost from the weekly oil market report published by the Energy Information Administration earlier in the session and the barrel of West Texas Intermediate rose to its highest level since mid-November at $58.06. As of writing, the WTI was trading at $57.70, adding 1.15% on a daily basis.

The EIA today announced that crude oil stocks in the U.S. decreased by 3.9 million barrels in the week ending March 8 compared to analysts' estimate for an increase of 2.65 million barrels. Commenting on the data, "It's a big crude oil draw for this time of year. Usually you see builds as a function of the refinery utilization rate," Bob Yawger, director of energy futures at Mizuho, told Reuters.

On Tuesday the EIA reported that it slashed its global oil demand growth forecasts both for 2019 and 2020 but revised down its output forecasts as well to support crude oil prices. Meanwhile, the 6-day long power outage in Venezuela continues to hurt the oil production and weigh on exports to provide an additional boost to oil.

Technical levels to consider

WTI

Trends:
    Daily SMA20: 56.44
    Daily SMA50: 54.12
    Daily SMA100: 53.79
    Daily SMA200: 61.71
Levels:
    Previous Daily High: 57.82
    Previous Daily Low: 57.03
    Previous Weekly High: 57.41
    Previous Weekly Low: 54.79
    Previous Monthly High: 57.92
    Previous Monthly Low: 51.56
    Daily Fibonacci 38.2%: 57.52
    Daily Fibonacci 61.8%: 57.33
    Daily Pivot Point S1: 56.99
    Daily Pivot Point S2: 56.61
    Daily Pivot Point S3: 56.2
    Daily Pivot Point R1: 57.78
    Daily Pivot Point R2: 58.19
    Daily Pivot Point R3: 58.57

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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