- WTI prices are moving back from the highs just below $ 64.00.
- The EIA reported a drop of nearly 6 million barrels on Wednesday.
- Baker Hughes will release its weekly tally of US oil rigs later on Friday.
US benchmark barrel prices for light sweet crude add to recent gains and approach the key $ 64.00 level.
WTI strengthened after data from China
WTI prices have been rising since Monday due to renewed optimism about the economic recovery in the Old Continent.
This view was further supported after both OPEC and EIA revised up their forecasts for crude oil demand for the current year.
Helping with the rise, the EIA on Wednesday reported a nearly 6 million barrel drop in US crude oil inventories over the past week. The data coincided with another weekly drop reported by the API late on Tuesday.
Still on the bright side, the Chinese economy expanded at an annualized 18.3% in the first quarter, according to data released Thursday. The promising results were also bolstered by strong expansion in industrial production and retail sales.
Closing the calendar, Baker Hughes will report on weekly drilling activity in the US later in the American session.
What to look for around WTI
West Texas Intermediate prices hit new multi-week highs just below $ 64.00 on Friday. While crude oil prices barely reacted to OPEC + ‘s latest decision to begin easing oil production cuts starting in May, the sentiment of traders remains bullish and investors have been looking beyond the pandemic and refocusing on the progress of the vaccination campaign in Europe and the impact on growth prospects and oil demand. On the other hand, the sharp decline in net speculative longs seen in recent weeks could now act as a renewed source of buying interest.
Significant levels
Right now, a barrel of WTI is gaining 0.03% to $ 63.34 and faces the next hurdle at $ 67.94 (March 8, 2021 high) followed by $ 69.71 (200-month SMA) and finally 70.00 (key level). On the other hand, a breakout of $ 61.21 (50-day SMA) would target $ 57.28 (March 23 weekly low) and then $ 55.38 (100-day SMA).
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