Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Commodities

Crude Oil rises on Wednesday as energies shrug off another inventories surge

Source Fxstreet

WTI climbed back towards $78.00 per barrel on Wednesday.
API US barrel counts lurched higher once more.
Geopolitical concerns and hopes of refinery expansion keep barrel bids high.

West Texas Intermediate (WTI) US Crude Oil rebounded on Wednesday as barrel traders continue to price in possible supply lane constraints amidst geopolitical turmoil in the Middle East. Hopes of expanded US refinery activity eating away at a buildup of US Crude Oil supplies are also keeping barrel prices higher, but a growing overhang of US barrel counts is getting harder for energy markets to ignore.

According to the American Petroleum Insitute (API), US Crude Oil supply stocks unexpectedly rose once again for the week ended February 16, with an additional 7.168 million barrels added to US supply. This comes well above the forecast 4.298 million barrels and adds even further to the previous week’s surprise glut of 8.52 million barrels.

According to API barrel counts, US Crude Oil supplies are up an excess of nearly 18 million barrels since the week ended November 2.

US Crude Oil refineries have been slowly coming back online since overall refined petroleum product output declined in 2022 as several refineries went offline for overhauls, upgrades, or security concerns. Barrel traders are betting on an uptick in US refining capacity to eat away at record Crude Oil production within the US and other countries that are not part of the Organization of the Petroleum Exporting Countries (OPEC).

WTI technical outlook

WTI US Crude Oil climbed over 2% bottom-to-top from Wednesday’s low bids near $76.25, and WTI is climbing towards $78.00 per barrel as energy markets pin back into near-term highs.

Daily candlesticks show US Crude Oil in a notably sideways bent as bids knock into the 200-day Simple Moving Average (SMA) near $77.55. WTI has failed to pierce into fresh high ground since peaking at $79.20 in January, and Crude Oil longs are struggling to drag WTI further into bull country after barrel prices bottomed out in December at $67.97.

WTI peaked just shy of $94.00 per barrel last September, and remains down over 17% from that high.

WTI hourly chart

WTI daily chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.

Author FXStreet

Oct 06, Tue

Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.

【Daily Brief】Gold rebounds 1% off a two-month low, Nasdaq drops 1.25% and yields ease — the storm premium keeps WTI near $91 Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.

Author Irene Q.

Yesterday 06: 28

Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.

Hurricane Isaias has shut in a quarter of Gulf oil output — can WTI clear $92 before Thursday's EIA report?WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.

Author Irene Q.

Yesterday 06: 38

WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.

US September CPI preview: inflation set to hit 3.7% — will the Fed hike in December?US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.

Author Irene Q.

8 hours ago

US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.

Gold posts first weekly gain in three weeks — can $4,200 hold through CPI?Spot gold closed at $4,194.645, up 1.47% — its first weekly gain in three weeks — and COMEX futures settled back above $4,200 at $4,220.30. Here are the drivers, the levels and the scenarios into Wednesday's CPI.

Author Irene Q.

5 hours ago

Spot gold closed at $4,194.645, up 1.47% — its first weekly gain in three weeks — and COMEX futures settled back above $4,200 at $4,220.30. Here are the drivers, the levels and the scenarios into Wednesday's CPI.

Related Instrument