WTI rises above $13.00 after API stockpiles, EIA figures in focus
- WTI extends the recovery moves $10.00 after upbeat API data.
- Concerns surrounding demand-supply imbalance creating huge supplies keep weighing the commodity.
- OPEC’s April oil supply surges to the highest since December 2018.
- EIA data, US economics and virus updates are likely the key catalysts.
WTI June futures on NYMEX pierce $13.00, currently near $13.20 during the post-settlement period on Tuesday, early Wednesday morning in Asia. The black gold recently benefited from the weekly API inventories but the gains were still capped by fears of the oversupply. Traders will wait for the official weekly stockpile data, as well as the coronavirus (COVID-19) updates, for fresh impulse.
The weekly release of private inventory data from the American Petroleum Institute (API) suggests a build of 9.978 million barrels versus the previous addition of 13.226 million barrels into the inventories.
The figures manage to please the buyers amid the latest rout due to the fears of rising inventories creating a lack of storage capacity.
On Tuesday, Reuters came out with the news suggesting that the April month oil supplies from the Organization of the Petroleum Exporting Countries (OPEC) surged to the highest since December 2018.
On the other hand, a likely gradual re-opening on the European and the US economies from early-May, coupled with the broad US dollar weakness seems to help the energy benchmark.
Looking forward, the oil traders will keep eyes on the virus updates amid fears of further weakening in the demand. To gauge the supply side catalysts, the weekly official Crude Oil Stocks Change from the Energy Information Administration (EIA), expected 10.6 million barrels versus 15.022 million barrels, will be the key to watch.
Technical analysis
Unless breaking above a three-week-old falling trend line, currently near $16.90, the black gold is less likely to avoid fears of revisiting sub-$10.00 area.