WTI Crude Oil rises above $60 to a new weekly high

  • WTI Crude Oil extended its gains a nears $61, a 3% rise on the day and the highest this week.
  • A favorable market mood in Wall Street supports higher prices

The price of WTI Crude Oil extends its gains and has reached a high of $60.83 in the American afternoon. It has surpassed the rate that was seen on Monday. Prices of oil have been rising alongside US stocks and as the VIX volatility index drops to the lower ground, implying a calmer market mood ahead.

This is a sharp turnaround from the early hours of the US session. The inflation report came out above expectations, at 1.8% on core CPI and 2.1% on headline CPI. Higher inflation implies a quicker rise in interest rates. The initial reaction was adverse for the price of oil, and it reached a low of $58.20.

Oil is moving higher alongside share prices and also as the weekly report of crude oil inventories showed a build of 1.8 million barrels, below a rise of 2.8 that was expected. 

Tomorrow, the economic calendar features the Producer Price Index which will provide further information about inflation. In addition, the US publishes the New York and Philadelphia manufacturing indices as well as the weekly jobless claims report. 

Levels to watch on WTI Crude Oil

The $60.83 level is the next cap. Further above, $62.07 served as resistance last week and is the next level to watch. On the downside, the round level of $60.00 provides support. It is followed by the low of $59.20 and then by $58.20, the low point mentioned earlier. 

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