WTI consolidates the upside around $54 ahead of EIA data
- OPEC supply cuts talks and bullish API data support oil prices.
- Markets assess the economic fallout of China coronavirus.
- Next of relevance remains the US EIA Crude Stocks Change data.
Having reached a four-day high at $54.25 earlier this Wednesday, WTI (oil futures on NYMEX) has entered a phase of consolidation, as it trades nearly a 1% higher around the 54 level.
The bulls extend their control into a second straight session today after ending a multi-day rout, as markets reassess the economic impact of China’s coronavirus outbreak amid rising death toll and confirmed cases in the country.
Further, the black gold also finds support from the latest reports that the OPEC is considering extending its ongoing output cuts or even deepening them to stem the excessive oil price declines due to the virus spread.
Meanwhile, a surprise draw in the US crude inventories, as revealed by the American Petroleum Institute’s Crude Stocks data late Tuesday, also keeps the sentiment underpinned around the barrel of WTI.
The latest API data showed that the US crude oil inventories fell by 4.3 million barrels last week against the expectations of a gain of 482,000 barrels.
Heading into the US Energy Information Administration (EIA) US Crude Stocks Change data release later on Wednesday, the bulls take a breather amid resurgent US dollar demand across the board.
Investors resort to repositioning ahead of the key Fed interest rate decision due at 1900 GMT.
WTI Technical levels to consider