WTI in highs around $70.50 post-EIA

Crude oil prices move higher above the $70.50 area.
WTI prints fresh 5-day tops beyond $70.50 per barrel.
US crude oil inventories dropped more than 2.0 mbpd last week.

Pablo Piovano FXStreet

Prices of the barrel of the American reference for the sweet light crude oil are prolonging the upside today, recording fresh multi-day peaks in the mid-$70.00s in the wake of the DoE’s weekly report.

WTI in multi-day tops around $70.50

Prices of the barrel of the West Texas Intermediate are advancing for yet another session on Wednesday supported by the latest figures from the weekly report on US supplies by the EIA.

WTI moved higher after the EIA reported US crude oil supplies dropped by 2.057 mbpd during last week, missing initial forecasts.

Additionally, Weekly Distillate Stocks rose by 0.839 mbpd and Gasoline inventories decreased by 1.719 mbpd, bettering consensus.

Furthermore from the report showed supplies at Cushing diminishing by 1.250 mbpd, adding to last week’s 1.242 mbpd decrease.

In the meantime, the upside momentum in crude oil found extra wings in earlier comments by Saudi officials, who showed no apparent concerns in case the barrel of Brent climbs to the $80.00 mark in an scenario of supply disruptions.

In addition, US sanctions against Iran (expected to kick in on November 4) keep sustaining the sentiment around crude oil and could likely limit occasional dips.

Moving forward, Baker Hughes will publish on Friday its weekly figures for the US drilling activity.

WTI significant levels

At the moment the barrel of WTI is up 1.25% at $70.68 and a breakout of $71.89 (high Sep.4) would aim for $72.80 (high May 22) and finally $75.34 (2018 high Jul.3). On the flip side, the next down barrier emerges at $69.45 (21-day SMA) followed by $69.19 (10-day SMA) and then $67.23 (low Sep.7).

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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