WTI regains $37.00 and beyond on EIA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The barrel of West Texas Intermediate has retaken the $37.00 mark and advanced to session highs following positive results from the EIA’s report.

    WTI firmer post-EIA, focus on FOMC

    WTI is advancing for the second consecutive session after the EIA’s weekly report showed crude oil inventories have decreased by more than 4.9 million barrels during the last week, more than initially estimated. The data add to yesterday’s drop by 4.3 million barrels reported by the API.

    Further data showed gasoline inventories ticking higher by nearly 1.5 million barrels, while Cushing crude stockpiles increased by more than 0.350 million barrels.

    The likeliness of an agreement between OPEC and non-OPEC countries at the meeting in Doha in order to freeze the oil output, plus a now softer tone in the greenback has also collaborated with the upside, all ahead of the key FOMC minutes due later in the NA session.

    WTI levels to consider

    At the moment the barrel of WTI is gaining 4.15% at $37.38 facing the immediate hurdle at $38.38 (20-day sma) followed by $40.12 (high Mar.28) and finally $40.61 (200-day sma). On the flip side, a breakdown of $35.13 (100-day sma) would open the door to $34.11 (55-day sma) and then $32.10 (38.2% Fibo of $26.05-$41.90).
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