WTI: Probes three-day high around $54.25 on risk reset/API data, EIA stocks in focus

WTI rises more than 1.00%, up for the second day in a row.
Receding pessimism concerning China’s coronavirus, upbeat manufacturing data and API inventories help the energy benchmark.
Today’s EIA inventories and Fed Interest Rate decision will be the key to watch.

Anil Panchal FXStreet

WTI takes the bids to $54.25 with 1.15% gains while heading into the European session on Wednesday. The energy benchmark extends the previous days’ gains amid cautiously optimistic trade sentiment as well as following upbeat private stockpile data.

The latest Crude Oil Stock data from the American Petroleum Institute (API) suggest a draw of 4.27 million barrels against an earlier increase of 1.6 million barrels. The data helps forecast today’s official inventory numbers from the Energy Information Administration (EIA) for the week ended on January 24. Forecasts suggest an increase of 0.46 million barrels versus the previous contraction of 0.405 million barrels.

Also supporting the energy benchmark’s pullback is the hope that the Chinese government will be able to tackle the coronavirus problem that’s likely to peak in the next ten days.

Further to the oil buyers’ favor are recently positive manufacturing data from the US as well as increased odds of sustained monetary policy easing elsewhere.

It’s worth mentioning that Tuesday’s pullback could be mainly because of the speculations that the OPEC-led alliance, mostly known as OPEC+, will extend global production cuts. Moreover, tensions in the Middle East also contribute to oil price recovery.

Technical Analysis

The November 20, 2019 low near $54.85 and 61.8% Fibonacci retracement of the commodity’s August 2019 to January 2020 upside, at $56.25, act as the near-term upside barriers. On the downside, the recent low of $52.15 and an upward sloping trend line since August 07, 2019, at $51.65 now, can please the sellers during fresh declines.

Additional important levels

Overview
Today last price	54.21
Today Daily Change	0.62
Today Daily Change %	1.16
Today daily open	53.59

Trends
Daily SMA20	58.54
Daily SMA50	58.8
Daily SMA100	57.29
Daily SMA200	57.44

Levels
Previous Daily High	53.93
Previous Daily Low	52.7
Previous Weekly High	59.65
Previous Weekly Low	53.86
Previous Monthly High	62.38
Previous Monthly Low	55.41
Daily Fibonacci 38.2%	53.46
Daily Fibonacci 61.8%	53.17
Daily Pivot Point S1	52.89
Daily Pivot Point S2	52.18
Daily Pivot Point S3	51.66
Daily Pivot Point R1	54.11
Daily Pivot Point R2	54.63
Daily Pivot Point R3	55.34

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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