- WTI clings to $57.30 at the start of Asian trading on Thursday.
- The Crude benchmark weakened recently on API stock data.
- The official EIA inventory release will be crucial for the energy traders going forward.
WTI trades around $57.30 during early Asian trading on Thursday. The barrel of West Texas Intermediate dropped to near $57.20 levels after the American Petroleum Institute (API) released its weekly crude oil stock data. Next up in the oil traders’ radar will be the official reading of the US stock change from the Energy Information Administration (EIA), up for 16:00 GMT today.
The weekly release of API crude oil stock surprised marked with an increase to 1.260M versus -0.998M drawdown registered last-week. The data renewed supply-glut fears amongst energy traders.
Following a weak start to the day due to industry stock report, investors may now concentrate on the official inventory levels up for later today.
As per the Reuters report, “U.S. crude stockpiles were expected to have risen by 3.1 million barrels last week, the fifth consecutive weekly build. Inventories at Cushing, Oklahoma, the main U.S. oil storage hub, will grow largely because U.S. data shows refinery capacity utilization in the Midwest dropped to 84.2 percent from 92.9 percent the previous week, following a string of planned and unplanned outages.”
In addition to stock data, the arrival of China’s Vice Premier Liu He to Washington in order to discuss future trade ties with the US diplomats will also be a key event for the crude. The reason being China is in the top-list of world’s largest crude consumers and its trade spat with the US has so far challenged the global growth.
While EIA is likely to follow the API’s footsteps, WTI might not refrain from declining further. Though, any positive news from the US-China trade front can help the energy traders ignore supply-glut threats for the time being.
WTI Technical Analysis
Considering an immediate downward sloping trend-line and API data, $57.00 and $56.85 seem nearby supports for the WTI benchmark, a break of which can recall $56.50 & $56.30 on the chart.
Alternatively, an upside clearance of $57.40 can propel the quote again towards $57.65 and then to $58.00 whereas $58.20 and $58.50 are likely following numbers that can please buyers.
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 holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD edges higher toward 1.2600
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold rebounds above $2,310 after downbeat NFP data, eyes on Fedspeak
Gold price trades in positive territory above $2,310 after closing the previous week in the red. The weaker-than-expected US employment data have boosted the odds of a September Fed rate cut, hurting the USD and helping XAU/USD find support.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.