WTI refreshes 3-year tops near $ 63.80, nears $ 64 mark
- Prints fresh 3-year tops.
- Unperturbed by DXY recovery.
- Falling US output levels support.
The bulls remain unstoppable, now pushing WTI (oil futures on NYMEX) to print fresh three-year tops near $ 63.80 in a bid to reclaim the $ 64 mark.
WTI: Focus shifts to the US rigs count data
The barrel of WTI trades broke its consolidative mode to the upside and refreshed the highest levels since Dec 2014, as the bulls continue to cheer falling US oil output levels, which bolsters the expectations of tighter oil markets this year.
The US production fell 290,000 barrels per day to 9.5 million bpd, the EIA showed in its report, despite expectations of the US output breaking through 10 million bpd, Reuters reported. Markets also shrugged-off a rise in the US gasoline inventories, as a 5 million barrels in the US crude stockpiles seen in the last week outweighed.
However, it remains to be seen if the commodity manages to regain the $ 64 handle amid looming concerns that the markets may be overheating, especially after the 13% rally witnessed since early December.
Meanwhile, the American Petroleum Institute (API) showed in its weekly report published late-Tuesday, the US crude inventories fell by 11.2 million barrels in the week to Jan. 5, to 416.6 million barrels.
Focus now remains on the US rigs count and inflation data due tomorrow for fresh trading impetus in the black gold. At the time of writing, WTI trades +0.36% higher at $ 63.78 while Brent rises +0.33% to $ 69.36.
WTI Technical Levels
The resistances are aligned at $64 (round number) ahead of $ 64.63 (classic R2/ Fib R3) and $65 (psychological levels). On the downside, supports are located at $63.40 (daily pivot), $62.72 (5-DMA) and $61.93 (10-DMA).