Today in the early Asian market, WTI crude oil prices surged in response to a drop in the crude inventories last week. The US crude oil WTI futures trades crossed above the psychological level of $60 to trade around $60.62. In case you are wondering what’s behind it, well it’s mostly the ongoing geopolitical tensions between the US & Iran and the EIA report.

Crude Oil – EIA Report

The Energy Information Administration reported a drop of around 9.50 million barrels in WTI crude oil stockpiles which is way higher than the 1.09 million draws beforehand. WTI Crude Oil prices surged as much 4.5% overnight rapidly after the EIA report.

The bullish rally in crude oil is also supported by the bullish API report as the American Petroleum Institute report revealed an 8.1 million-barrel decline in stockpiles last week. Both reports complement the bullish trend among traders.

WTI Crude Oil – Technical Outlook

At the moment, crude oil has crossed over the psychological trading level of $60 before violating a the well-maintained trading range of $57.65 – $57.40. Both incidents suggest a strong bullish intention among investors.

Crude oil has already achieved our 58 and 60 targets and now it’s heading towards the target level of 61.35. The violation of this target level can lead to oil prices towards 63.27, but I’m not expecting such an aggressive movement this week. Let’s stay bullish above 60 today.

Support Resistance
59.12 61.07
57.9 61.81
55.95 63.76
Key Trading Level: 59.85

Good luck!