WTI looks firmer, approaches $71.00/bbl

Prices of the WTI post moderate gains around the $71.00 mark/bbl.
WTI manages to revert somewhat yesterday’s sharp pullback.
EIA’s report showed US crude oil supplies dropped by more than 12 mbpd.

Prices of the barrel of the American benchmark for the sweet light crude oil are advancing moderately above the $70.00 mark on Thursday, partially reverting Wednesday’s retracement.

WTI firmer on IEA comments

Prices of the West Texas Intermediate are inching higher today after yesterday’s drop from levels above the $74.00 mark to the $70.00 neighbourhood despite the large draw in US crude oil inventories, as per the latest EIA report.

In fact, US crude oil supplies decreased by more than 12 mbpd during last week, the largest drop since 2016, according to the EIA. Prices of the barrel of WTI managed to advance beyond the $74.00 mark in the wake of the release, although the bullish attempt was quickly reverted.

However, WTI recorded a sharp drop on Wednesday after Libya announced it would resume its exports of crude, while higher US exports of crude to India also collaborated with the correction lower as well as rising tensions on the US-China trade front.

Today, the IEA warned that spare oil capacity could be stretched to the limit by OPEC supply boost, which is lending some support to crude oil prices.

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

WTI significant levels

At the moment the barrel of WTI is up 0.41% at $70.92 facing the next hurdle at $73.34 (10-day sma) followed by $75.34 (2018 high Jul.4) and then $77.95 (high Nov.21 2014). On the downside, a break below $72.81 (low Jul.11) would target $70.07 (low Jul.11) and finally $69.38 (55-day sma).

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