WTI fails to sustain the bounce above $ 61 mark, EIA data eyed

  • Trims strong China data led gains, as soaring US output weighs.
  • All eyes on the US EIA crude stockpiles data.

WTI (oil futures on NYMEX) ran into sellers once again above the 61 handle, as persisting worries over rising US output levels continue to cast a dark cloud on its price-outlook.

Moreover, the bulls remain cautious heading into the US EIA crude stockpiles data due on the cards later today, as another rise in the US output levels and/ or a buildup in the crude inventories could trigger a fresh round of selling in the barrel of WTI.

Meanwhile, the latest leg higher in the black gold was mainly driven by solid Chinese industrial production and crude oil output data. China’s NBS showed that the January-February domestic crude oil production fell 1.9% y/y to 30.37 million tonnes, equivalent to 3.77 million barrels per day (bpd).

Also, a smaller-than-expected build in the US crude inventories, as reported by the API late-Tuesday, kept the prices underpinned. U.S. crude inventories rose by 1.2 million barrels in the week to March 9, to 428 million barrels. Markets had predicted an increase of 2 million barrels.

WTI Technicals

At $ 60.94, the resistances are aligned at $ 61.47/53 (5 & 10-DMA), $ 61.98 (20-DMA) and $ 62.50 (psychological levels). On the flipside, the supports are located at $ 60.85 (100-DMA), $ 60.50 (key support) and $ 59.34 (classic S2/ Fib S3).

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