WTI set sails to $50.00 on EIA’s report

Crude oil prices have advanced further today in the wake of the EIA’s weekly report, sending the barrel of West Texas Intermediate to the $49.80 area.

WTI firmer as inventories kept dropping

Prices for the WTI has been boosted further after the EIA reported crude oil inventories decreased by nearly 3 million barrels during last week, adding to yesterday’s report by the API (-7.6 million barrels).

Further data saw inventories at Cushing up by almost 0.570 million barrels while Gasoline inventories increased less than expected by just above 0.200 million barrels.

The positive news from both API and EIA reports has been tempered by the now swelling buying interest around the greenback, which has managed to revert the initial weakness following solid prints from the US Services sector and Factory Orders.

WTI levels to consider

At the moment the barrel of WTI is advancing 2.20% at $49.78 and a breakout of $50.54 (high Jun.22) would expose $51.67 (2016 high Jun.6) and then $53.89 (high Jul.10). On the other hand, the next support lines up at $46.30 (100-day sma) followed by $45.95 (20-day sma) and finally $42.55 (low Sep.20).