WTI looks weaker near the $59.00 mark ahead of EIA


  • The barrel of WTI is down smalls to the $59.00 region.
  • The API reported a 2.6M barrel drop in crude oil supplies.
  • The EIA’s weekly report on stockpiles is next on the docket.

Prices of the barrel of WTI charts an inconclusive session around the $59.00 mark per barrel so far on Wednesday.

WTI capped by $60.00

The West Texas Intermediate keeps navigating the lower bound of the weekly range around the $59.00 yardstick, while bulls failed to push prices past the key $60.00 mark per barrel during early trade.

Crude oil prices started the session on a positive footing following positive news regarding the vaccine rollout in Europe along with news that the IMF revised up its forecast for global growth and Tuesday’s drop in US crude oil supplies, as reported by the API.

However, the recent decision by the OPEC+ to start easing its oil production cuts from May appears to still be weighing on traders’ morale. In the same line, Iran and other Western powers started talks in Vienna on Tuesday, all aimed at reviving the 2015 nuclear accord, which could potentially see Teheran sanctions lifted and the subsequent increase in the country’s oil production/exports.

Later in the session, the EIA will publish its weekly report on US crude oil inventories ahead of Friday’s oil rig count by driller Baker Hughes.

What to look for around WTI

Prices of the American benchmark for the sweet light crude oil extends the choppy activity seen in past sessions and look to be consolidating below the $60.00 mark so far. In fact, the November-March rally in the commodity came to a halt just below the $68.00 mark per barrel (March 8) amidst renewed worries on the impact on the economic recovery of fresh lockdown measures in Europe along with the slow pace of the vaccine campaign. Adding to the downward trend, the stronger note of the dollar has been also weighing on prices along with diminished inflows into commodity-based ETFs. On another front, refineries are expected to go into maintenance-mode for the next 1-2 months, putting prices under extra pressure.

Key events in the crude oil space: Weekly report on US crude oil supplies by the EIA (Wednesday) – US oil rig count (Friday).

Eminent issues on the back boiler: Higher crude oil prices could spark fresh interest in US shale and potential increase in production. Demand-supply balance could prompt a moderate correction lower later in the year. Potential overheating of the oil market if current tight conditions extend into H2 2021. Bouts of geopolitical effervescence, mainly in Africa and the Middle East.

WTI significant levels

At the moment the barrel of WTI is down 0.22% at $59.05 and a breach of $57.28 (weekly low Mar.23) would expose $54.05 (100-day SMA) and then $51.46 (weekly low Jan.22). On the upside, the next hurdle is located at $62.25 (weekly high Mar.30) seconded by 67.94 (2021 high Mar.8) and finally $70.00 (key level).

 

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slips below 1.2050 amid dollar strength

EUR/USD is trading below 1.2050, losing some of its gains as the dollar shrugs off the fresh drop in yields and rises. European regulators said the benefits of J&J's vaccine outweigh the risks.

EUR/USD News

GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 

GBP/USD News

XAU/USD tests key Fibo resistance at $1,775

XAU/USD rebounds after closing in the negative territory on Monday. 10-year US Treasury bond yield is edging lower on Tuesday. Additional gains are likely if gold manages to clear $1,775 resistance.

Gold News

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

Read more

S&P 500 (SPX) Update: Equity markets take a well deserved breather, crypto stocks slide

Equity markets took a much-needed break from setting record highs on Monday. Tesla suffered a steep 5% fall after reports of a crash with no one at the wheel. Have a Coke and a smile was up 1% as KO smashed earnings estimates.

Read more

Forex MAJORS

Cryptocurrencies

Signatures