WTI rises +1%, looks to regain $ 54 ahead of EIA data

Oil cheers US-China trade optimism, Venezuela sanctions and OPEC cuts.
IEA monthly oil market report highlights the Venezuelan risks to supplies.
Eyes on EIA crude stockpiles after an unexpected drawdown reported by API.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) staged a rebound and broke its Asian consolidative phase in Europe, now targeting a test of the 54 handle amid a better sentiment towards the risk assets, as markets remain expectant of the US-China trade deal.

More so, the upside bias around the black gold remains intact following an unexpected decline in the US crude stockpiles, as reported by the API late-Tuesday. The US commercial crude stockpiles dropped by 998,000 barrels for the week ended Feb. 8^th.

However, the main drivers behind the upward trajectory are the deepening OPEC output cuts and rising supply disruption concerns amid the US sanctions on Venezuela, which was highlighted by the International Energy Agency (IEA) in its monthly oil market report.

Attention now turns towards the official US government crude inventories data due to be published by the Energy Information Administration (EIA) later in the NA session. Analysts surveyed by S&P Global Platts expect the EIA to report a rise of 2.7 million barrels in crude supplies.

WTI Technical Levels

:
    Today Last Price: 53.70
    Today Daily change: 39 pips
    Today Daily change %: 0.73%
    Today Daily Open: 53.67
Trends:
    Daily SMA20: 53.54
    Daily SMA50: 51.05
    Daily SMA100: 56.45
    Daily SMA200: 63.02
Levels:
    Previous Daily High: 54.39
    Previous Daily Low: 52.63
    Previous Weekly High: 55.93
    Previous Weekly Low: 52.05
    Previous Monthly High: 55.48
    Previous Monthly Low: 44.52
    Daily Fibonacci 38.2%: 53.72
    Daily Fibonacci 61.8%: 53.3
    Daily Pivot Point S1: 52.74
    Daily Pivot Point S2: 51.8
    Daily Pivot Point S3: 50.98
    Daily Pivot Point R1: 54.5
    Daily Pivot Point R2: 55.32
    Daily Pivot Point R3: 56.26

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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