WTI: A phase of consolidation near multi-month tops of $ 58.14
- Canada’s pipeline shutdown news remain supportive.
- Negative US rigs count data offset USD weakness and bullish EIA report.
WTI (oil futures on NYMEX) clocked fresh two-and-a-half year highs at $ 58.14 in early Asia, and since then remains in close proximity to the last, as the bulls lack impetus amid holiday-thinned trading.
WTI: Bulls poised to regain $ 60 mark?
The black gold is seen consolidating its recent rally, although the sentiment remains buoyed by persistent supply disruption concerns, in the wake of the Canadian Keystone pipeline shutdown after oil spill South Dakota. Keystone is one of the largest pipelines carrying crude from Canada to the US.
Moreover, a drawdown in the US crude inventories, as showed by the EIA report published yesterday, also continues to lend support to the oil prices. The US crude inventories fell 1.9 million barrels in the week to Nov. 17, to 457.14 million barrels. Stocks have dropped by 15% from their records in March, to below 2016 levels, as Reuters reports.
Furthermore, the commodity also receives some boost from the recent comments delivered by the Qatari and Venezuelan Oil Ministers, citing that the oil market has found balance. However, further upside appears to lack follow-through, as markets remain cautious amid a rise in the US rigs count and slowing volumes, in light of a Thanksgiving holiday in the US.
At the time of writing, WTI trades -0.38% lower at $ 57.80, while Brent drops -0.58% to $ 62.95.
WTI Technical Levels
Higher-side levels: $ 58.14 (multi-month tops), $ 58.50 (psychological levels), $ 58.80 (classic R2/ Fib R3)
Lower-side levels: $ 57.06 (5-DMA), 56.48/36 (10 & 20-DMA), 56 (zero figure)