- Prices of the WTI trades on a positive note around $61.50.
- The API reported a 3.6M barrel drop in US supplies on Tuesday.
- Next on tap will be the EIA’s weekly report on crude inventories.
Prices of the barrel of the West Texas Intermediate advance to new 2-week highs beyond the $61.00 mark on Wednesday.
WTI now looks to EIA
Prices of WTI advance for the third session in a row and look to break above the multi-session consolidative pattern in place since the beginning of April, always around the key $60.00 mark and with support near $57.50 for the time being.
Also supporting prices, the IEA revised up its forecasts for oil demand for this year and now expects an increase to 5.7 million bpd. The IEA’s move fell in line with the OPEC’s projections on Tuesday. Indeed, the cartel now sees the global oil demand increasing to 96.5 million bpd during the current year and the global economy to expand 5.4% ini 2021 (from 5.1%).
Still on the positive side, the API reported late on Tuesday an unexpected drop of around 3.6 million barrels during last week ahead of the EIA’s weekly report on crude oil inventories due later on Wednesday.
In the meantime, crude oil prices keep tracking the progress of the global vaccination campaign and its impact on the economic recovery and oil demand, although fresh lockdown measures my many G10 countries seem to have poured some cold water over the traders’ expectations as of late.
What to look for around WTI
Prices of the American benchmark for the sweet light crude oil move to multi-day highs past the $61.00 mark on Wednesday. Crude oil prices barely reacted to the latest OPEC+ decision to start easing the oil output cuts from May, refocusing instead on the progress of the vaccination campaign in Europe and the impact on growth outlook and oil demand. The strong pullback in the speculative net longs seen in past weeks could now act as a renewed source of buying sentiment.
Key events in the crude oil space: Weekly reports on US crude oil supplies by the API (Tuesday) and the EIA (Wednesday) – US oil rig count (Friday) – OPEC meeting on April 28th.
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 gaining 1.55% at $61.37 and faces the next hurdle at $61.55 (weekly high Apr.14) seconded by $62.25 (weekly high Mar.30) and finally 67.94 (2021 high Mar.8). On the flip side, a breach of $57.28 (weekly low Mar.23) would expose $54.98 (100-day SMA) and then $51.46 (weekly low Jan.22).
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.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.