WTI: Supply cut concerns please buyers with $57, sellers await API, EIA data

WTI traders near $57.00 during initial trading hours on Tuesday.
The quote strengthened recently as supply cut concerns from OPEC remain in command.
Weekly inventory levels will be next for traders to follow.

Anil Panchal FXStreet

WTI trades above $57.00 for the first time in over a week during early Tuesday. The energy benchmark gained traction as weekend comments from Saudi Arabia seems to prove right after recent statements from the OPEC secretary. Energy traders may now await weekly inventory details from API and EIA in order to determine near-term trade direction.

During the weekend, Saudi Arabia showed readiness to extend deeper than the agreed supply cut in April. The news report gained further support from weekly US drilling sector activity report published by Baker Hughes that said a number of rigs drilling for new oil production in the US fell by nine to 834.

On late-Monday, OPEC Secretary Mohammed Sanusi Barkindo spoke at an energy conference in Houston. The cartel authority said that the on-going supply adjustments will continue through 2019 and the rebalancing of the global oil market is a work in progress. The comments back the latest news from Saudi Arabia and pleased buyers.

Though weekly crude inventory levels are still left for publishing and become a reason to worry. First among them will be private industry survey on oil stock from the American Petroleum Institute (API) on late-Tuesday. Following that, official oil stock change from Energy Information Administration (EIA) for the week ending on March 04 will be closely watched. While API registered 7.29M figure during the prior week, EIA numbers were at 7.069M.

WTI Technical Analysis

Break of $57.00 enables the energy benchmark to aim for $57.80 and 58.00 during further advances.

$56.60 and $56.10 can offer immediate support in case prices slip under $57.00

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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