WTI Corrects From 13-Week Highs While Holding Above $ 61.00 Level Amid Texas Freeze

• WTI cuts gains to test $ 61.00 level ahead of US EIA data.
• Oil remains supported by falling production due to deep freeze in Texas.
• The weakness of the US dollar also keeps the WTI bulls hopeful.

The WTI (NYMEX crude futures) is at a Corrective decline from new 13-month highs of $ 62.27, apparently driven by profit-taking, as fundamentals continue to support bullish move.

However, the news that OPEC and its allies (OPEC +) could ease oil supply restrictions from AprilIn the wake of the price recovery, they could be prompting investors to reassess the extent of the WTI rally.

The black gold has reached new yearly highs as a historic winter storm ripped through Texas and surrounding regions, breaking one million barrels of crude production, according to analysts at Wood Mackenzie.

A larger-than-expected drop in U.S. crude oil inventories has also heightened supply concerns., which supports the recent increase in the price of a barrel of WTI.

The latest data released by the American Petroleum Institute (API) showed that US crude oil stocks fell by 5.8 million barrels in the week through February 12 versus expectations for a 2.4 million barrel decline.

Going forward, the black gold pullback could be limited by the widespread decline in the US dollar, although weekly crude stock data from the US Energy Information Administration (EIA) will draw investors’ attention to new business directives.

WTI technical levels

With the MACD signal in the green, WTI has a little more margin above $ 62.00 before reaching the resistance line of the channel near $ 62.55. Meanwhile, an uptrend line from January 31, at $ 59.60, adds to the downside support even if the WTI retracement extends below the aforementioned channel support near $ 59.90, ”notes the analyst. from FXStreet Anil Panchal.

WTI additional technical levels