WTI pierced $53.00 post-EIA, keeps gains so far

Crude oil prices have briefly faded part of the daily advance following the DoE’s weekly report on US crude supplies, just to return near daily highs soon afterwards.

WTI gains capped near $53.40

The barrel of West Texas Intermediate eased to the $52.90 area after the EIA’s weekly report showed US crude oil supplies rose by nearly 6.5 million barrels during last week, more than initially estimated and the largest increase since October.

Additionally, Gasoline inventories increased by almost 3.9 million barrels while supplies at Cushing dropped by more than 1.2 million barrels.

Prices for the WTI will remain under pressure as the FOMC meeting is up next. Market consensus expects the Committee to refrain from tightening the monetary policy further today, although the Committee should remain focused on the uncertainty around Trump’s potential policies.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.80% at $53.23 facing the next hurdle at $53.56 (high Jan.31) followed by $54.08 (high Jan.27) and finally $54.32 (high Jan.6). On the other hand, a break below $52.34 (low Jan.31) would aim for $51.47 (55-day sma) and then $50.91 (low Jan.18).