- WTI edged into fresh highs near $81.40 as energy markets hope for drawdown.
- EIA barrel counts reported a larger-than-expected decline in US Crude Oil stocks.
- Barrel traders edge bids higher on extended hopes of a summertime supply crunch.
West Texas Intermediate (WTI) US Crude Oil inched into fresh highs on Thursday, clipping $81.40 and continuing its march towards the $82.00 handle. Crude Oil markets lurch forward on renewed hopes of a summertime upswing in fuel demand helping to chew away at a looming oversupply issue in global oil supplies.
The Energy Information Administration (EIA) reported an unexpected decline in US Crude Oil Stocks Change for the week ended June 14. EIA barrels counts printed a -2.547 million barrel decline, sharply down from the previous week’s 3.73 million barrel buildup and even lower than the forecast -2.0 million decline. Despite the drag on EIA barrel stocks, traders with a calculator handy will note that the week’s backslide brings EIA Crude Oil counts for the year to a 26 million barrel surplus.
Crude Oil markets are bidding up barrel prices as energy markets pin their hopes on a summertime uptick in fuel demand for cooling and travel purposes. This comes after an uptick in Chinese fossil fuel demand failed to materialize and a non-starter kickoff to the US Memorial Day “driving season.”
The Organization of the Petroleum Exporting Countries (OPEC) is set to phase out voluntary production cuts for its extended network of non-member ally states, OPEC+, later this year. OPEC+ nations that shouldered a significant burden in trying to bolster global Crude Oil prices by intentionally restricting the amount of unrefined Crude Oil they pull out of the ground has begun to weigh on government budgets that routinely rely on barrel-selling activity to balance accounts.
WTI technical outlook
WTI extended bullish momentum on Thursday, edging towards $81.50 as intraday bids accelerate above rising trendlines from the last major swing low into $72.50. US Crude Oil has climbed further above the 200-day Exponential Moving Average (EMA) at $78.85.
WTI has closed bullish for all but four of the last 12 consecutive trading days, climbing 12.34% from the last major low.
WTI hourly chart
WTI daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0700 ahead of key US PCE inflation
EUR/USD is back in the red below 1.0700 in the early European morning on Friday. The pair reverses the previous rebound amid resurgent US Dollar demand even as risk sentiment remains in a sweeter spot. Markets turn anxious ahead of US PCE inflation and Sunday's French elections.
GBP/USD remains vulnerable near monthly low, US PCE data awaited
GBP/USD attracts fresh sellers on Friday, though the downside remains cushioned. Traders now seem reluctant to place aggressive directional bets ahead of the US PCE. The technical setup suggests that the path of least resistance remains to the downside.
Gold sellers refuse to give up, as US PCE inflation looms
Gold price has snapped its rebound from two-week lows early Friday, losing ground after running into offers near the $2,330 resistance again. The next direction for Gold price now remains in the hands of the US Personal Consumption Expenditure inflation data.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC struggles around the $62,000 level
Bitcoin price faces pullback resistance at the lower band of the descending wedge around $62,000. Ethereum price finds support at $3,288, the 61.8% Fibonacci retracement level. Ripple price faces resistance at $0.500, its daily resistance level.
Friday calendar stacked with first-tier data
Key standouts on Friday’s calendar come from German import prices, UK GDP, German unemployment, Canada GDP, US core PCE, personal income, personal spending, Michigan sentiment, Chicago PMIs, and Fedspeak.