WTI: Bulls gathering pace for a break above $ 63, EIA report eyed
- Bulls take a breather amid risk-on, as US-China trade optimism underpin.
- Markets ignore an unexpected rise in the US inventories, economic slowdown woes.
- Eyes US EIA crude supplies report for the next push higher.
WTI (oil futures on NYMEX) extended its winning streak into a fourth straight day this Wednesday, having posted fresh five-month highs at 62.98 last hour. At the press time, the rates trade near 62.70 levels, modestly flat on the day.
The black gold continues to consolidate the recent bullish momentum and awaits the US EIA crude stockpiles data for the fresh leg higher, especially after the US API report showed an unexpected build in crude stockpiles.
Today’s advances in the rates can be mainly attributed to the risk-on moods, fuelled by the reports about the progress on the US-Chi8na trade talks and cheerful Chinese services PMI release. The higher-yielding oil usually benefits from the risk-on market profiles.
Meanwhile, the barrel of WTI continues to find support from the increased expectations of the US imposing additional sanctions on Iranian energy sector while supply risks from Venezuela combined with the ongoing OPEC output cuts also continue to keep the buoyant tone intact around the commodity.
Looking ahead, the sentiment on Wall Street and the US EIA crude inventory report will offer fresh directives on the prices, as the bulls remain poised for a sustained break above the 63 handle.
WTI Technical Levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
