WTI fades the spike above $74.00 post-EIA

Crude oil prices remain negative for the day despite EIA report.
WTI extends the consolidative theme so far this week.
US crude oil inventories dropped by more than 12.0 mbpd last week.

Pablo Piovano FXStreet

Prices of the barrel of the American reference for the sweet light crude oil are trading in 2-day lows despite the auspicious figures from the latest EIA report on crude oil stockpiles.

WTI briefly tests $74.00 on EIA

Prices of the West Texas Intermediate are receding from the previous bull run to levels above the $74.00 mark per barrel despite the EIA reported the largest draw since 2016.

In fact, the EIA reported that US crude oil supplies decreased by 12.633 mbpd during last week, more than initially forecasted.

Furthermore, Weekly Distillate Stocks rose by 4.125 mbpd and Gasoline stockpiles decreased by 0.694 mbpd, below initial estimates.

In addition, inventories at Cushing shrunk by 2.062 mbpd, adding to last week’s 2.113 mbpd drop.

In the meantime, crude oil prices are extending the sideline theme this week, as traders remain cautious over the increasing jitters on the US-China trade front and potential retaliatory measures by China.

Later in the week, Baker Hughes will publish its weekly report on the US drilling activity.

WTI significant levels

At the moment the barrel of WTI is down 1.71% at $73.03 and a breakdown of $72.81 (low Jul.11) would target $72.62 (low Jul.6) and finally $70.43 (21-day sma). On the other hand, the next hurdle is located at $75.34 (2018 high Jul.4) seconded by $77.95 (high Nov.21 2014) and then $79.92 (high Nov.8 2014).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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