Crude Oil bumps higher on supply draws, WTI knocks on $81.00

Source Fxstreet
Mar 14, 2024 21:49
  • Crude Oil surged on Thursday as markets repriced growth outlook.
  • IEA revised its demand outlook but still lags behind OPEC.
  • API, EIA Crude Stocks both drew down this week.

West Texas Intermediate (WTI) US Crude Oil knocked into its highest bids in over three months, etching in a new high of $81.05 on Thursday as barrel traders rebalance their price outlook after US Crude Oil stocks fell more than expected this week and the Internation Energy Agency (IEA) lifted their demand growth outlook.

The IEA is now forecasting global Crude Oil demand to increase through 2024 by 1.3 million barrels per day, raising their initial forecasts by an additional 110K barrels per day. According to the IEA, stronger demand growth from the US as well as ongoing uncertainty surrounding ship attacks by Houthi rebels in the Red Sea are increasing demand for ship fuel as cargo ships reroute around the continent of Africa to connect Asia and European markets as Iranian-backed militants block access to the Suez Canal.

The IEA now expects global Crude Oil demand to average 103.2 million barrels per day in 2024, and the agency’s 2025 demand growth forecasts have increased by about 50% since first introducing their outlook in summer of last year. Despite the significant uptick in demand expectations, the IEA is still coming in well below demand expectations from the Organization of the Petroleum Exporting Countries (OPEC), which expects Crude Oil demand growth to add at least 2.2 million bpd to current demand through 2024.

US Crude Oil supplies declined more than expected this week as refineries kick in additional production. The American Petroleum Institute (API) saw a 5.5 million barrel drawdown for the week ended March 8 compared to the expected uptick of 400K barrels, while the Energy Information Administration (EIA) Crude Oil stocks fell 1.5 million over the same period, well below the forecast increase of 1.338 million barrels.

WTI technical outlook

WTI US Crude Oil climbed to a multi-month high of $81.50 on Thursday, tipping into $81.05 before settling back into the $80.50 level. WTI shot higher after rebounding from last week’s late swing low into $76.50. US Crude Oil has rallied nearly 60% bottom-to-top.

Daily candlesticks punched higher, piercing a long-standing consolidation range around the 200-day Simple Moving Average (SMA) near the $78.00 handle. US Crude Oil is up nearly 19% from November’s bottom bids near $68.00 per barrel.

WTI hourly chart

WTI daily chart

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Bitcoin Price’s Path To $300,000 Cleared By Massive Bullish Pattern, Says AnalystAccording to an analysis shared by renowned crypto analyst Gert van Lagen, the Bitcoin price chart has illustrated a significant technical pattern in the 3-day chart (BTC/USD) that could potentially
Author  NewsBTC
According to an analysis shared by renowned crypto analyst Gert van Lagen, the Bitcoin price chart has illustrated a significant technical pattern in the 3-day chart (BTC/USD) that could potentially
placeholder
US Dollar flattens as Powell smashes hopes of quick interest-rate cutsThe US Dollar (USD) trades overall in the green against most peers on Thursday, posting only slight gains, making the US Dollar Index (DXY) trade in a very narrow range.
Author  FXStreet
The US Dollar (USD) trades overall in the green against most peers on Thursday, posting only slight gains, making the US Dollar Index (DXY) trade in a very narrow range.
goTop
quote