WTI looks firmer, regains the $22.00 mark and beyond
- Prices of the WTI extends the recovery beyond $22.00/bbl.
- Decline in prices halted near the $19.00 mark last Friday.
- EIA reported on Wednesday a nearly 14M barrel build last week.
Prices of the WTI are adding to Wednesday’s gains and manage to advance beyond the $22.00 mark per barrel in the second half of the week.
WTI higher on potential halt of the price war
The West Texas Intermediate is advancing for the second consecutive session on Thursday, extending the recovery following Friday’s 18-year lows in the vicinity of the $19.00 mark per barrel.
The renewed (and much needed) upbeat mood in crude oil markets is tracking latest rumours that a potential truce in the Russia-Saudi Arabia price war could be in the offing, particularly after President Trump talked to both leaders in past days.
In addition, President Trump is expected to meet chief executives of US energy companies on Friday in order to debate the ongoing crisis and discuss the policy in the industry.
On the calendar, the EIA reported on Wednesday a larger-than-expected build in US crude oil supplies during last week, reaching nearly 14M barrels. The figures added to the API’s report of a 10.5M build on Tuesday.
What to look for around WTI
Crude oil prices remain in “recovery mode” following Friday’s rebound from 18-year lows near $19.00 per barrel. The broader picture, however, remains unchanged and dominated by supply and demand concerns stemming from the Russia-Saudi Arabia price war and the impact on the industry of the COVID-19. Also adding to oversupply concerns, there is still the palpable possibility that Saudi Arabia could carry on with its plans to increase oil exports by more than 10M bpd in May.
WTI significant levels
At the moment the barrel of WTI is gaining 4.92% at $22.23 and faces the next hurdle at $25.20 (weekly high Mar.25) followed by $27.60 (21-day SMA) and then $28.46 (high Mar.20). On the other hand, a breach of $19.29 (2020 low Mar.30) would expose $17.12 (monthly low November 2001) and finally $10.65 (monthly low December 1998).