- Crude oil prices tested $60.50 post-EIA, fresh daily lows.
- Crude oil stockpiles increased by 5.022 mbpd, more than expected.
- WTI keeps the daily range in the wake of the release.
Prices of the barrel of the West Texas Intermediate have quickly visited session lows in the mid-$60.00s after the EIA reported US oil supplies increased more than initially estimated.
WTI finds support near $60.50 on EIA’s report
Prices of the WTI are reverting Tuesday’s pullback and are trading above the key $62.00 mark per barrel after US crude oil supplies increased less than forecasted.
In fact, the EIA reported that crude oil supplies rose by 5.022 million barrels vs. an expected build of 2.023 million barrels. Additionally, Weekly Distillates Stocks dropped by 4.360 million barrels and Gasoline stockpiles decreased by 6.271 million barrels, crushing forecasts.
Furthermore, supplies at Cushing rose by 0.338 million barrels, reverting last week’s 0.668 million barrels decline.
In the meantime, prices of the WTI keep the consolidative pattern so far this week, with clear and strong contention emerging in the $60.00 neighbourhood and gains so far limited around $63.30.
As usual, the trade-off between rising US oil production and OPEC deal efforts to rebalance the market remain the exclusive driver behind price action, accompanied at the same time by the risk appetite trends.
Later in the week, Baker Hughes will publish its oil rig count on Friday (-4 prev.).
WTI significant levels
At the moment the barrel of WTI is down 0.30% at $60.73 and a break below $60.03 (low Mar.8) would target $59.82 (100-day sma) and finally $58.10 (2018 low Feb.9). On the other hand, the next hurdle aligns at $62.35 (high Mar.12) followed by $63.31 (high Mar.6) and then $64.30 (high Feb.6).
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