WTI: Firmer around mid-$65.00s despite softer draw in API oil inventories

  • WTI stays on the front foot inside $65.25-50 trading range.
  • API Weekly Crude Oil Stock eased from -7.688M to -2.533M for the week ended on May 07.
  • Colonial Pipeline stays on the course to restore supplies before weekend, OPEC raised demand outlook.
  • Oil markets turn sluggish ahead of US inflation, official stockpile data and UN meeting on Middle East tensions.

WTI ends Tuesday with the heaviest gains in a week, up 0.80% around $65.45, as oil traders cheered US dollar weakness. Also on the positive side was the ongoing absence of supplies from the Colonial Pipeline and the US government’s rejection to use emergency measures to balance the energy markets. In doing so, the bulls ignored the weekly inventory data from the American Petroleum Institute (API).

The industry report showed that the weekly crude oil stock dropped 2.533 million barrels versus the previous draw of 7.688 million barrels.

The US dollar index (DXY) remained pressured, dropped to the fresh low since late February, amid market fears ahead of the key Consumer Price Index (CPI) data. Given the lack of tuning between the market’s reflation fears and the Fed’s defense to the easy money policies, today’s US inflation figures will be watched to confirm whether it’s a one-time affair or a real challenge to the US Federal Reserve (Fed).

Read: US Consumer Price Index April Preview: The two base effects of inflation

It’s worth mentioning that the Wall Street benchmarks also portrayed the risk-off mood, backed by the sustained downtrend in the technology shares.

Other than the market sentiment and the US dollar moves, the ongoing meeting among the United Nations (UN) members and the Colonial Pipeline outage keeps WTI buyers hopeful. Also supporting the oil bulls was the Organization of the Petroleum Exporting Countries (OPEC) oil forecasts. The oil cartel left its expectations for 2021 world oil demand growth unchanged at 5.95 million barrels per day (bpd), as reported by Reuters, in its monthly report.

Looking forward, the official stockpile report by the Energy Information Administration (EIA), expected -2.25M versus -7.99M, will be important. However, nothing more crucial than the US inflation data for April, expected to pick up to 3.6% YoY versus 2.6% prior.

Technical analysis

A six-week-old rising trend channel keeps WTI buyers hopeful until the quote stays above $63.00 on a daily closing basis.

Additional important levels

Today last price 65.43
Today Daily Change 0.55
Today Daily Change % 0.85%
Today daily open 64.88
Daily SMA20 63.38
Daily SMA50 62.35
Daily SMA100 58.2
Daily SMA200 49.94
Previous Daily High 65.75
Previous Daily Low 63.96
Previous Weekly High 66.7
Previous Weekly Low 62.88
Previous Monthly High 65.4
Previous Monthly Low 57.66
Daily Fibonacci 38.2% 65.06
Daily Fibonacci 61.8% 64.64
Daily Pivot Point S1 63.98
Daily Pivot Point S2 63.08
Daily Pivot Point S3 62.19
Daily Pivot Point R1 65.76
Daily Pivot Point R2 66.65
Daily Pivot Point R3 67.55



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds above 1.21 as tensions mount ahead of the Fed

EUR/USD is trading above 1.21, in limited, typical, pre-Federal Reserve trading. Markets await the bank's dot plot and Chair Powell's comments on potential tapering of the Fed's bond-buying scheme. 


GBP/USD hovers around 1.41 after strong UK CPI

GBP/USD is trading around 1.41, rising after the UK reported an annual inflation rate of 2.1% in May, beating estimates and raising the chances of a BOE rate hike. The focus remains on the Federal Reserve's decision later in the day.


XAU/USD remains confined in a range near $1,860 level, FOMC awaited

Gold lacked any firm directional bias and remained confined in a narrow trading band through the first half of the European session on Wednesday.

Gold News

Shiba Inu ready to reverse to $0.0000050

SHIB price faces stiff resistance ahead. Shiba Inu has had a difficult time recovering, suggesting that it may soon face rejection. In the following video, FXStreet's analysts evaluate where SHIB price could be heading next as Shiba Inu gets weaker.

Read more

Federal Reserve Preview: First up, then down? Playbook for trading the Fed

To taper or not to taper? That is the question for markets ahead of the Federal Reserve's all-important June meeting. Fed Chair Powell will likely shoot down any talk of tapering the bank's bond buys. Highly volatile trading could see the greenback first drop.

Read more