WTI turns positive, challenges $65.00 post -EIA

Crude oil prices rebounds to the $65.00 area the after EIA's report.
US oil supplies rose more than expected by 1.643 mbpd last week.
WTI keeps the daily range around the $65.00 mark.

Pablo Piovano FXStreet

Prices of the barrel of the West Texas Intermediate are now challenging the $65.00 milestone after the EIA reported US oil supplies went up more than initially forecasted.

WTI turns positive near $65.00 on EIA’s publication

Prices of the American reference for the sweet light crude oil are trading close to the $65.00 mark per barrel today following the DoE’s report, where US crude oil inventories increased more than expected in the week ending on March 23.

In fact, the EIA reported that crude oil inventories went up by 1.643 million barrels vs. an expected drop of 0.287 million barrels. Additionally, Weekly Distillates Stocks dropped by 2.090 million barrels and Gasoline Inventories decreased by 3.472 million barrels (less than expected).

Extra information noted supplies at Cushing rising by 1.804 million barrels, adding to last week’s 0.905 million barrels gain.

In the meantime, crude oil prices keep the march south unchanged so far this week amidst rising (premature?) rumours of a potential extension of the current OPEC/non-OPEC output cut deal into 2019, Iran-Saudi Arabia effervescence and the pick up in risk-on trade. In addition, the current price action in crude oil is practically ignoring the probable drop in Venezuelan oil production in the near term despite potential threats of US sanctions against the Caribbean country.

Later in the week, driller Baker Hughes will publish its oil rig count (+4 prev. to 804).

WTI significant levels

At the moment the barrel of WTI is up 0.51% at $64.95 facing immediate contention at $63.00 (55-day sma) followed by $62.65 (21-day sma) and finally $60.03 (low Mar.8). On the other hand, a breakout of $66.38 (high Mar.26) would open the door to $66.72 (2018 high Jan.25) and then $77.95 (high Nov.21 2014).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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