WTI moves above $71.00 post-EIA, fresh tops

Crude oil prices extend the recovery beyond the $71.00 handle.
WTI clinches fresh multi-day highs above $71.00 per barrel.
US crude oil inventories dropped nearly 5.3 mbpd last week.

Pablo Piovano FXStreet

Prices of the barrel of the American reference for the sweet light crude oil are adding to yesterday’s gains and are clinching fresh peaks above the key $71.00 mark following the EIA’s weekly report.

WTI bid after EIA, looks to Iran, Florence

Prices of the West Texas Intermediate are up for the second consecutive session on Wednesday, prolonging the upside in the wake of a positive report from the DoE.

WTI moved higher today after the EIA reported US crude oil supplies dropped more than initially forecasted by 5.296 mbpd during last week.

Additionally, Weekly Distillate Stocks unexpectedly rose by 6.163 mbpd and Gasoline inventories increased by 1.250 mbpd, bettering previous estimates.

Furthermore, supplies at Cushing dropped by 1.242 mbpd, reverting last week’s 0.549 mbpd build.

In the meantime, the softer tone around the buck gives extra support to the already buoyant WTI, which remains in multi-day peaks amidst concerns over US sanctions against Iran and the probable impact of Hurricane Florence when reaches US shores at some point in the next hours.

Looking ahead, 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 1.58% at $71.22 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 $69.63 (10-day SMA) followed by $68.68 (21-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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