WTI retreats from tops above $51.00 on EIA report
- Crude oil prices keep the positive mood above $50.00/bbl.
- Prices of the WTI stay underpinned by improved risk-on trade.
- US crude oil inventories dropped by around 1.7M barrels last week.
Prices of the barrel of West Texas Intermediate keep the firm note above the $50.00 mark on Wednesday despite the EIA’s weekly report came in below expectations.
WTI bid beyond $50.00/bbl
After testing fresh multi-week peaks beyond the $51.00 milestone, WTI is now giving away some gains after the EIA reported a lower-than-expected draw in US crude oil supplies, this time by 1.68M barrels.
In addition, Weekly Distillate Stocks increased by 10.611M barrels and Gasoline inventories went up by 8.066M barrels, missing expectations.
Further out, supplies at Cushing increased by 0.330M barrels, adding to last week’s 0.641M barrels build.
In the meantime, prices of the WTI are up for the seventh session in a row after bottoming out in the mid-$42.00s in late December. The up move in crude oil follows a better mood in the risk-associated space after positive US-China trade talks, while declining output in Saudi Arabia and disruptions in Libya’s Sharara oil field are also collaborating with sentiment.
Looking ahead, Baker Hughes will release its weekly report on the US drilling activity on Friday.
WTI significant levels
At the moment the barrel of WTI is up 1.91% at $50.63 and a breakout of $51.39 (2019 high Jan.9) would aim for $52.17 (200-week SMA) and finally $54.45 (high Dec.4). On the downside, the next support lines up at $47.89 (21-day SMA) seconded by $47.13 (10-day SMA) and then 42.22 (2018 low Dec.24).