WTI fails to hold above $64 after EIA's weekly crude oil stock report
- EIA reports a decline in the U.S. crude oil stocks.
- Russia's Novak says too soon to be talking about a possible OPEC+ deal.
- Upbeat data from China eases concerns over demand outlook.
After slumping to a fresh daily low of below $64 in the early NA session, the barrel of West Texas Intermediate staged a modest rebound following the Energy Information Administration's weekly crude oil stock data but struggled to preserve its momentum. As of writing, the WTI was down 0.6% on the day at $63.90.
The EIA today reported that crude oil stocks in the week ending April 12 decreased by 1.4 million barrels compared to analysts' expectation for an increase of 7.3 million barrels. "Gasoline production decreased last week, averaging 9.9 million barrels per day. Distillate fuel production decreased last week, averaging 4.8 million barrels per day," the EIA further added in its publication," to provide a short-lasting boost to crude oil prices.
Earlier in the day, the upbeat retail sales and industrial production data from China helped ease concerns over the oil demand from the world's biggest oil consumer weakening amid an economic slowdown and helped the WTI gain traction in the first half of the day.
On the other hand, Russian Energy Minister Alexander Novak said that it was too soon to talk about the possible options for an OPEC+ deal and said that he was expecting the final decision to be taken in June, keeping crude oil's gains under check.
Technical levels
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.
