WTI Crude Oil Prices Rose Amid Coronoviirus Fears & Rising Crude Stockpiles

WTI crude oil prices are flashing green and rose 1.4% to $50.64 mainly due to decreased coronavirus fears and the American Petroleum Institute (API) reported that US crude oil inventories rose sharply last week. In its weekly report, the API said crude stockpiles rose by 6 million barrels for the week ended Feb. 7. Whereas, the Energy Information Administration to report a rise in inventories of about 3 million barrels.

At the coronavirus front, the latest numbers from China’s Health Commission gave that there are 1,638 new cases of coronavirus infected people from Hubei. Compared to the previous day’s 2,097 cases, the disease seems to decrease gradually. Moreover, the World Health Organization (WHO) has already said that the vaccine could be ready in 18 months, giving a boost to the risk-on sentiment.

However, Russia has been unwilling to perform to the additional cut, while Saudi Arabia wanted global major oil producers to agree to a quick oil supply cut. Looking forward, official EIA data is scheduled to release on Wednesday at 10:30 a.m. EDT (15:30 GMT).

Daily Support and Resistance
S1 47.89
S2 48.95
S3 49.38
Pivot Point 50.01
R1 50.44
R2 51.06
R3 52.12

WTI finally showed some bullish trend, but it still stays below 55.30. The RSI and Stochastics are in the oversold region, but it’s trying to come out of the oversold range. For now, US Oil may find support around 51.30. So we can look for selling trades below 55.30 and bullish above 53.50.

Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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