- WTI climbed back above $80.00 on Tuesday as bullish recovery continues.
- Hopes of a summertime uptick in demand are bolstering Crude Oil bets.
- Energy traders are shrugging off another barrel buildup in API Crude Oil barrel counts.
West Texas Intermediate (WTI) US Crude Oil broke decisively above $80.00 per barrel on Tuesday as barrel traders shrugged off another build-up in American Petroleum Institute (API) Weekly Crude Oil Stocks. Energy markets are betting on an upswing in fossil fuel demand heading into summer to sop up extra supply throughout global Crude Oil markets, even as the Organization of the Petroleum Exporting Countries (OPEC) and its extended network of non-member ally states, OPEC+, prepares to axe voluntary production cuts that were meant to support Crude Oil prices and crimp global supply.
According to the API, US Weekly Crude Oil Stocks rose 2.264 million barrels for the week ended June 14, clamping down on the previous week’s -2.428 million barrel drawdown. Distillate Stocks also rose 538K barrels, though Gasoline Stocks Change declined 1.077 million barrels, though significantly less than the previous week’s -2.549 million barrel drawdown. Investors with a calculator nearby will note that this week’s 2.264 million barrel addition to API weekly counts brings the supply overhang of US Crude Oil to over 17 million barrels since the first week of January 2024.
Geopolitical turmoil continues to attack a fear premium to Crude Oil markets after a Ukranian drone strike successfully ignited a Russian fuel tank facility this week, and Israel-Palestinian tensions continue to simmer. Coupled with ambiguous hopes of a summertime uptick in demand, energy markets are shrugging off bearish factors, like US Crude Oil overproduction and disappointing Chinese demand figures last week.
WTI technical outlook
US Crude Oil is accelerating into bullish territory as WTI pushes off rising technical support from the last notable swing low into $72.50. WTI crossed over $80.50 on Tuesday to test $80.70 as barrel traders push prices higher in a bid to capture previously lost territory.
This week’s bullish push in WTI has sent US Crude Oil above the 200-day Exponential Moving Average (EMA) at $78.86. WTI has also cracked a descending trendline drawn from 2024’s peak bids near $87.00, and a failed push higher could drag WTI bids back down to the $76.00 region.
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 holds lower ground below 1.0300 as traders await US NFP
EUR/USD holds lower ground below 1.0300 in European trading hours on Friday. Concerns over US President-elect Trump's policies and hawkish Fed expectations favor the US Dollar ahead of the critical US Nonfarm Payrolls data release.
GBP/USD falls back below 1.2300, US NFP eyed
GBP/USD is falling back below 1.2300 in the European morning on Friday, failing to sustain the rebound. The pair remains vulnerable amid persistent US Dollat strength and the UK bond market turmoil. The focus now shifts to the US labor market data for fresh trading directives.
Gold price sticks to intraday gains near multi-week top; US NFP in focus
Gold price attracts buyers for the fourth straight day on Friday amid some haven flows. The Fed’s hawkish stance, elevated US bond yields and a bullish USD should cap gains. Traders might also opt to wait for the release of the key US NFP report later this Friday.
Nonfarm Payrolls forecast: US December job gains set to decline sharply from November
US Nonfarm Payrolls are expected to rise by 160K in December after jumping by 227K in November. US jobs data is set to rock the US Dollar after hawkish Fed Minutes published on Wednesday.
How to trade NFP, one of the most volatile events Premium
NFP is the acronym for Nonfarm Payrolls, arguably the most important economic data release in the world. The indicator, which provides a comprehensive snapshot of the health of the US labor market, is typically published on the first Friday of each month.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.