WTI Rises As DoE's Produce Draw
Spot WTI trades over 1% higher on the session now as the latest figures from the DoE produced a draw of -2.566M vs the expected -0.686M. Yesterday the API inventory levels depressed the price of oil after a build was recorded and it's clear to see the Department of Energy has not got the same picture. Elsewhere in the report, Cushing Crude Oil Inventories 0.058M dipped a little from last weeks 0.772M and the all-important production level stayed at around 11mln bpd, which it has been there or thereabouts in the last few reports.
Production has been ramped recently as the US try and take the void left by Iran in which they imposed sanctions on in the first place. Many other OPEC nations have also offered to plug the hole left by Iran but the Iranian oil officials are still managing to sell their oil to China who themselves are at odds with America over trade. Russia and Saudi Arabia have also been reported to have increased production but the market seems to have a consensus price of around $70/bbl.
The price of WTI has shot up 1.12% so far in the session after struggling overnight, we now could see some potential resistance at the $70/bbl psychological level and above that at $72.67/bbl. On the downside, support could be found at the weekly trendline support zone of $67. 90 to $68/bbl....