WTI targets $64.80 on China data, EIA report in the spotlight

The surprise draw in API data and welcome data from China entertain energy traders.
EIA report will be important to foresee near-term moves.

Anil Panchal FXStreet

WTI trades near $64.50 ahead of the Europe open on Wednesday. The black gold recently gained traction as surprise decline in API crude oil stocks followed upbeat China data. Energy traders may now concentrate on the weekly US inventory report for fresh clues.

The American Petroleum Institute (API) registered a surprise drop in weekly inventory data for the US. The private industry survey figure dipped to -3.096 million barrels versus +4.091 million barrels prior.

On early Wednesday, China released headline economic data for the March month and also for the first quarter (Q1) 2019. Data from the dragon nation showed industrial production rallied way beyond expectations and prior whereas retail sales and gross domestic product (GDP) also refrained from registering any negatives.

Given the fact that China is the world’s largest commodity user and the biggest industrial player, any positives from the nation also favor future energy demand.

Looking forward, the Energy Information Administration (EIA) is up for releasing the US crude oil stock report for the week ended on April 12 at 14:30 GMT. Forecasts concerning the official inventory level suggest an increase of 7.329 million barrels against 7.029 million barrels earlier release.

WTI Technical Analysis

A successful break of $64.80, surrounding current month high and August 2018 lows, becomes pre-requisite for the WTI to aim for $65.00 and October 23 low around $65.70.

On the downside, $63.00 seems near-term strong support, a break of which can recall $61.90 and 200-day simple moving average (SMA) level of $61.10.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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