Inventories Are In, WTI Crude Above $52.00
Shain Vernier • 1 min read
The weekly crude oil inventories reports are in and energy bulls are enthusiastic about today’s statistics. Draws on supply were evident in both the API and EIA releases, driving bids to the market in mass. Subsequently, February WTI crude oil futures have posted an intraday high above $52.50, up more than $2.00 on the day.
Crude Oil Inventories Down Significantly
January of 2019 has effectively thrown oil seasonality out the window, bringing a strong rally amid dwindling supplies. Here is a quick look at this week’s hard data:
Event Actual Projected Previous
API Crude Oil Stocks -6.27M NA -4.50M
EIA Crude Oil Stocks -1.680M -2.800M 0.007M
The API and EIA figures are both negative and down week-over-week. Without a doubt, this trend is driving interest to the global oil markets. If lagging supply becomes the norm, we may be in for $55.00 WTI in the very near future.
February WTI Crude Oil Futures: Technical Outlook
It is up, up, and away for crude oil futures. Price has shattered daily topside resistance and it appears that the $52.50-$51.50 value area in February WTI is going to be a key zone moving forward.
Overview: For the time being, it is all systems go for crude oil futures. While I do expect a return and test of $50.00, this market may hit $55.00 before that occurs. However, in the event that we see a retracement to daily downside support in and around $50.00, a long trade setup will likely become available.