WTI taps on $ 58, strongest since July 2015

Concerns over Canada’s pipeline disruption to the US support.
USD weakness further underpins.
Eyes on US EIA inventory report.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) extended its upbeat momentum into a second straight session on Wednesday, rallying hard to fresh multi-month highs on the back of drawdown in US crude stockpiles and supply disruption concerns.

WTI: Will it take-out 58 handle?

The black gold has entered a phase of upside consolidation, as the sentiment remains underpinned by a fall seen in the US crude inventories by 6.4 billion barrels in the week to Nov. 17, as revealed by the API report released late-Tuesday.

Moreover, oil prices also derived support from the latest reports of a cut in the Canadian oil deliveries to the US amid a pipeline shutdown that links Alberta’s oil sands to the US refineries, after a 5,000-barrel spill in South Dakota.

However, further upside appears to lack follow-through, as the bulls take a breather before the release of the official US government crude stockpiled data due later in the NA session.

At the time of writing, WTI jumps +1.60 to $ 57.73, while Brent rises +0.42% to $ 62.66.

WTI Technical Levels

Higher-side levels: $ 58 (round figure), $ 58.28 (classic daily R3), $ 58.50 (psychological levels)

Lower-side levels: $ 56.87/82 (daily pivot/ 5-DMA), 56.39/19 (10 & 20-DMA), 56 (zero figure)

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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