WTI struggles near $65.80 as supply crunch counters the US oil stock report
- Supply disruptions around the Middle East question recent inventory build.
- Baker Hughes rig count is in the spotlight for now.
Having witnessed pullback from nearly six-month high, WTI levitates near $65.80 during early Thursday. The energy benchmark previously dropped on broad US Dollar (USD) strength and increase in the stockpile report. However, the latest news from Iran, Saudi Arabia and Venezuela continues to highlight supply-crunch and favor the price strength.
On Wednesday, the Energy Information Administration (EIA) data showed that the US crude oil stocks rose to 5.479 million barrels for the week ended on April 19 versus the forecast of 1.255 million barrels. Prior to that, industry stockpile data from API also portrayed the increase in the US inventories.
However, Iran’s open threat to the US for its efforts to stop oil exports and Venezuela’s power shortage resulting in the output cut are likely supporting the black gold.
Investors may now concentrate on the weekly release of the Baker Hughes US rig counts data, up for release on Friday. The US rig counts have recently dropped to 825 during the week ended on April 18.
Prior to that, news reports concerning the response from the US lawmakers to the Iranian threat and some oil supply crunch headlines might entertain energy traders.
WTI Technical Analysis
A successful break of $66.10 is likely pre-requisite ahead of aiming to the late-October 2018 highs near $68.00, a break of which can propel the quote towards $68.50 and $70.00.
Meanwhile, $64.70 and $63.00 are likely nearby rest-points to watch during the energy benchmark’s U-turn.