WTI rises to new highs above $ 41.00 before API

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  • WTI prices rise and return to the $ 41.00 level.
  • The EIA forecasts a significant drop in global crude stocks in the fourth quarter of 2020.
  • The API will release its weekly report on US crude oil supplies later.

US Reference Barrel Prices for Light Sweet Crude they climbed to 3-day peaks above $ 41.00 on Wednesday.

EIA-driven WTI, watchful of supply data

Crude oil adds to Tuesday’s gains and rises above $ 41.00 a barrel following upbeat comments from the EIA. In fact, the agency predicted a significant drop in global inventories in the last quarter of the current year, adding that floating storage of crude oil fell by more than 139 mb in September.

Commodity prices have been making up for lost ground lately due to the auspicious results of Chinese trade data (released on Tuesday), which showed crude oil imports rose sharply during September. These results paint a more optimistic outlook for crude oil and reinforce the vision of a strong recovery in the Chinese economy.

Also adding to the rise in prices, rumors continue to revolve around the possibility that OPEC + members may postpone their intentions to increase oil production, originally scheduled for the end of the year, amid the persistent advance of the second wave of the coronavirus pandemic.

Later in the session, the API will release its weekly report on US crude oil supplies (-3.36M expected.) Ahead of Thursday’s EIA report and Baker Hughes weekly figures on drilling activity. from USA on Friday.

Technical levels

At the moment, a barrel of WTI is up 2.08% to $ 41.08 and faces the next hurdle at $ 41.46 (weekly high on September 18) seconded by $ 43.75 (monthly high on August 26) and finally $ 48.64 (monthly high on August 3). March). On the other hand, a breakout of $ 39.07 (Oct. 12 weekly low) would target $ 38.27 (200-day SMA) and then $ 36.66 (Oct. 2 monthly low).

 

Credits: Forex Street

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