WTI stays firmer above $60.00 following higher draw in API inventories

WTI ticks up on upbeat industry stockpile data.
Weaker US dollar and OPEC demand forecast join geopolitical worries from Iran to favor the energy buyers.
EIA inventories, US dollar moves will be the key to watch.

Anil Panchal FXStreet

Having flashed the strongest gains in two weeks, WTI remains positive around $60.50 amid the initial Asian session trading on Wednesday. In doing so, the energy benchmark respects a higher than the previous draw in weekly stockpile data from the American Petroleum Institute (API) as well as the US dollar weakness. Also supporting the black gold could be the geopolitical worries emanating from Iran.

API weekly crude oil stock for the period expired on April 09 marked a higher than -2.618M previous draw to -3.608M on Tuesday. The energy benchmark benefited from the stock as the supply crunch is likely to be met with a higher demand amid economic recovery.

The Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand growth in 2021 to 5.95 million barrels per day (bpd) from 5.89 million (bpd) in the previous report, per Reuters.

Elsewhere, the US dollar index (DXY) dropped to the fresh three-week low following upbeat US inflation figures and strong bond auction, not to forget the fresh coronavirus (COVID-19) vaccine fears after blood clotting issues with the Johnson & Johnson jabs.

It should be noted that fears of a 60% increase in Uranium enrichment by Iran and the following global repercussions are also providing background support to the black gold.

Moving on, the weekly official inventory data from the Energy Information Administration (EIA), expected -2.154M versus -3.522M prior, will be crucial but major attention will be given to the risk catalysts and the US dollar moves for fresh impulse.

Technical analysis

A clear break above a downward sloping trend line from March 08, around $60.35-40, becomes necessary for oil bulls to stay hopeful.

Additional important levels

Overview
Today last price	60.49
Today Daily Change	0.83
Today Daily Change %	1.39%
Today daily open	59.66

Trends
Daily SMA20	60.68
Daily SMA50	60.62
Daily SMA100	54.75
Daily SMA200	47.69

Levels
Previous Daily High	60.79
Previous Daily Low	58.77
Previous Weekly High	61.41
Previous Weekly Low	57.66
Previous Monthly High	67.87
Previous Monthly Low	57.27
Daily Fibonacci 38.2%	60.02
Daily Fibonacci 61.8%	59.54
Daily Pivot Point S1	58.69
Daily Pivot Point S2	57.72
Daily Pivot Point S3	56.67
Daily Pivot Point R1	60.71
Daily Pivot Point R2	61.76
Daily Pivot Point R3	62.73

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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