WTI US crude oil scorches up over 3%, touches $93 per barrel on Wednesday


  • WTI is testing the $93/bbl level in Wednesday trading.
  • US crude oil is getting shocked higher after a surprise drawdown in reserves.
  • Supply constraints are choking oil prices, sending barrel prices surging.

West Texas Intermediary (WTI) US crude oil prices are leaping higher for the day, pushed by an unexpected drawdown in US crude reserves. WTI reached a 13-month high of $93.18 and is poised for further upside as prices bake in around $93.00.

Energy Information Administration (EIA) crude oil inventories showed a surprise drop in US crude oil reserves, with the national supply declining over 2 million barrels versus the forecast -320K. 

Reserves at the Cushing, Oklahoma oil reservoir showed declines of just below a million barrels, adding to the over 2 million barrel decline last week. 

The EIA estimates that US crude oil reserves now sit just beneath 420 million barrels.

With oil demand continuing to climb, global energy production is expected to remain below supply equilibrium for the foreseeable future until production is increased. The current daily crude supply undershoot is estimated to be around 2 million barrels.

Saudi Arabia and Russia recently announced an extension of their combined 1.3 million bpd production cuts through the end of the year, and Russia is adding to price pressures after further restricting oil exports outside of Russia.

WTI technical outlook

With WTI pinning into fresh 13-month highs, technical resistance is thinning out on both the intraday and long-term outlooks. Oil bidders will immediately be looking for a push to $94/bbl, but with US crude prices riding so high for so long an extended relief rally could see technical indicators reset before a renewed push higher.

WTI is up almost 20% from the last swing low near $78.00, and a rising trendline from June's bottoms near $68.00 is providing additional technical support.

A breakdown to the 34-day Exponential Moving Average (EMA) currently at $86.00 could see a rebound, while a successful bearish break will have to contend with the 200-day Simple Moving Average (SMA) near $77.00.

WTI daily chart

WTI technical levels

WTI US OIL

Overview
Today last price 92.94
Today Daily Change 2.91
Today Daily Change % 3.23
Today daily open 90.03
 
Trends
Daily SMA20 87.77
Daily SMA50 83.2
Daily SMA100 77.41
Daily SMA200 77.09
 
Levels
Previous Daily High 90.19
Previous Daily Low 87.74
Previous Weekly High 92.26
Previous Weekly Low 88.15
Previous Monthly High 84.32
Previous Monthly Low 77.53
Daily Fibonacci 38.2% 89.26
Daily Fibonacci 61.8% 88.68
Daily Pivot Point S1 88.45
Daily Pivot Point S2 86.86
Daily Pivot Point S3 85.99
Daily Pivot Point R1 90.9
Daily Pivot Point R2 91.77
Daily Pivot Point R3 93.36

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD recovers toward 1.0400 as USD rally loses steam

EUR/USD recovers toward 1.0400 as USD rally loses steam

EUR/USD recovers from daily lows toward 1.0400 in the American session on Tuesday. Following the earlier rally, the USD struggles to preserve its strength as the bullish opening in Wall Street's main indexes point to an improving risk mood.

EUR/USD News
GBP/USD stays below 1.2300 after UK employment data

GBP/USD stays below 1.2300 after UK employment data

GBP/USD rebounds from session lows but remains below 1.2300 in the second half of the day on Tuesday. The US Dollar clings to modest gains but finds it difficult to gather further bullish momentum as the impact of Trump's tariff threats fade.

GBP/USD News
Gold climbs to fresh multi-month high above $2,730

Gold climbs to fresh multi-month high above $2,730

Gold gathers bullish momentum and trades at its highest level since early November above $2,730 on Tuesday. The benchmark 10-year US Treasury bond yield is down more than 1% below 4.6% following US President Trump's tariff threats, helping XAU/USD push higher.

Gold News
Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin’s price steadies above the $102,000 mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO among the traders in Bitcoin after President Donald Trump’s inauguration.

Read more
Prepare for huge US trade changes as Trump goes America first

Prepare for huge US trade changes as Trump goes America first

You can be sure that big changes are coming as far as US trade is concerned, even if we didn't get any new tariffs on President Trump's first day in office. A comprehensive investigation into US trade relationships was initiated via a memorandum. China, Canada, and Mexico are clearly in the immediate firing line. 

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures