WTI moves above $70.00 post-EIA
- Crude oil prices extend the up move beyond the $70.00 mark.
- WTI clinches fresh 3-week tops above $70.00 per barrel.
- US crude oil inventories dropped more than 2.5 mbpd last week.
Prices of the barrel of the American reference for the sweet light crude oil are extending the upbeat tone today, briefly advancing to fresh tops above the psychological $70.00 mark.
WTI flirting with the 10-day SMA above $70.00
Prices of the barrel of the West Texas Intermediate are up for the second session in a row today, bolstered by the persistent offered tone around the greenback.
WTI moved higher today after the EIA reported US crude oil supplies dropped more than initially forecasted by 2.566 mbpd during last week.
In addition, Weekly Distillate Stocks shrunk by 0.837 mbpd and Gasoline inventories decreased by 1.554 mbpd, bettering prior surveys.
Further out, supplies at Cushing rose by just 0.058 mbpd, adding to last week’s 0.772 mbpd build.
In the meantime, the upside momentum in crude oil prices stays well and sound and propped up by the persistent weakness around the buck. Earlier comments by IEA’s Birol noted that oil markets could tighten further by year end on the back of shrinking output in Venezuela, stronger demand and unstable production in the Middle East.
Moving forward, Baker Hughes will publish on Friday its weekly figures for the US drilling activity.
WTI significant levels
At the moment the barrel of WTI is up 0.64% at $69.61 and a breakout of $70.14 (high Aug.29) would aim for $70.56 (high Aug.6) and finally $71.39 (high Jul.30). On the flip side, the next down barrier emerges at $68.09 (21-day SMA) followed by $65.24 (200-day SMA) and then $64.69 (low Aug.16).
