WTI challenges 2019 highs on EIA report

• Crude oil prices move higher and tests YTD highs above $59.00.
• Prices of the WTI at shouting distance from the $60 mark.
• US crude oil supplies dropped more than estimated last week.

Prices of the WTI keep pushing higher today to levels beyond the $59.00 mark per barrel after the EIA reported a larger-than-expected draw in US oil stockpiles on the week ended on March 15.

WTI bid above $59.00/bbl

Prices of the barrel of West Texas Intermediate quickly left the negative territory after US crude oil supplies went down by nearly 9.6M barrels during last week.

In addition, Weekly Distillate Stocks shrunk by 4.127M barrels and Gasoline supplies dropped by 4.587M barrels, bettering forecasts.

Further out, inventories at Cushing decreased by 0.468M barrels, adding to last week’s 0.672M barrels drop.

Moving forward, driller Baker Hughes will publish its weekly report on the US oil rig count on Friday.

What to look for around WTI

Crude oil is navigating levels last seen in mid-November 2018 closer to the psychological $60.00 mark per barrel, always bolstered by the persistent selling bias around buck and a generalized better tone in the risk-associated complex. The underlying bullish view in crude oil remains firm, in the meantime, on the back of the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iran and Venezuela crude oil exports. Furthermore, the OPEC announced it will likely decide on an extension of the ongoing output cuts at the cartel’s meeting in June.

WTI significant levels

At the moment the barrel of WTI is up 0.42% at $59.25 and a breakout of $59.53 (2019 high Mar.19) would open the door for $59.63 (50% Fibo of the October-December drop) and finally $61.87 (200-day SMA). On the downside, the next support emerges at $57.75 (10-day SMA) seconded by $56.95 (21-day SMA) and finally $54.37 (low Mar.8).