- Crude oil prices prolong the rally to the vicinity of $65.00 after EIA.
- US oil supplies shrunk more than expected by 2.6 mbpd last week.
- WTI retakes the $64.00 handle and beyond in the wake of the release.
Prices of the barrel of the West Texas Intermediate are extending the weekly squeeze higher after the EIA reported US oil supplies went down more than initially estimated.
WTI advances beyond $64.00 on EIA’s report
Prices of the WTI are moving to fresh multi-week peaks above the $64.00 mark per barrel today after US crude oil inventories decreased more than forecasted in the week ending on March 16.
In fact, the EIA reported that crude oil supplies dropped by 2.622 million barrels vs. a forecasted build of 2.6 million barrels. Furthermore, Weekly Distillates Stocks fell by 2.022 million barrels and Gasoline Inventories decreased by 1.693 million barrels (less than expected).
Additional data saw stockpiles at Cushing rising by 0.905 million barrels, adding to last week’s 0.338 million barrels gain.
In the meantime, crude oil prices keep the march north unabated and bolstered by increasing geopolitical concerns over the Saudi Arabia-Iran situation, leaving behind jitters on rising US oil production for the time being. That said, WTI is already up more than 7% since lows in the $60.00 neighbourhood seen on March 14.
Later in the session, the FOMC will hold its meeting, while Baker Hughes will publish its oil rig count on Friday.
WTI significant levels
At the moment the barrel of WTI is advancing 1.74% at $64.72 facing immediate up barrier at $65.41 (200-month sma) followed by $66.35 (high Feb.2) and finally $66.72 (2018 high Jan.25). On the other hand, a breach of $62.77 (55-day sma) would aim for $61.97 (10-day sma) and finally $60.03 (low Mar.8).
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