WTI climbs to three-week highs above $53 ahead of API
- US imposes new sanctions on Venezuela by blacklisting Rosneft subsidiary.
- Easing coronavirus fears provide a boost to risk-sensitive commodities.
- Coming up: API's Weekly Crude Oil Stock data at 21:30 GMT.
Crude oil prices continued to push higher and the barrel of West Texas Intermediate (WTI) touched its highest level since January 29th at $53.35. As of writing, the WTI was trading at $53.15, adding 2.05% on a daily basis.
On Tuesday, the US has announced its decision to impose new sanctions on Venezuela by blacklisting a subsidiary of Russian state oil major Rosneft. This development was assessed as a factor that will cut more crude oil from the market and provided a boost to the WTI.
Risk sentiment improves on Wednesday
In the meantime, easing worries over the coronavirus outbreak weighing heavily on the global energy demand is helping the risk-related commodities' prices push higher.
The People's Bank of China (PBoC) on Tuesday said the impact of the coronavirus on the economy is expected to be limited and added the fundamentals of the economy had not changed. Moreover, Chinese authorities have reported that the pace of contagion outside the Hubei province had slowed.
Later in the session, the American Petroleum Institue (API) will release its Weekly Crude Oil Stock report.
Technical levels to consider