WTI crude oil prices edged higher, took rounds near the two-month highs at $33.68, and hit the high of $33.78 on Wednesday, last seen on March 11. Crude oil prices are set to end this week on the positive note, and the reason for the bullish bias could be attributed to the data which showed that US crude inventories fell again, which eased concerns about the oversupply.

On the other hand, the renewed fears about the economic fallout from COVID-19 turned out to be one of the key factors that kept a lid on any additional gains in oil prices. As of writing, WTI crude oil prices are currently trading at 34.11 and consolidating in the range between 33.36 and 34.43.

At the data front, the US Energy Information Administration (EIA) reported a 4.983 million-barrel drawdown in crude oil inventories for the week up to May 15 on Wednesday. The American Petroleum Institute (API) also reported a 4.8 million-barrel draw for the same period on Tuesday. Additionally, stocks at the Cushing, Oklahoma delivery hub fell by a record 5.6 million barrels.

As a result, WTI crude oil prices were higher yesterday and are likely to keep the front-month contract better bid during Thursday’s Asian trading hours. It is worth mentioning that the oil prices were higher by 14% for the week so far. If the gains maintain their upward trend through Friday’s close, it would be WTI’s 4th-consecutive weekly rise. Prices jumped 19%, 25%, and 16% in the previous three weeks.

On the other hand, the US outputs are declining, while other major producers motivated by Saudi Arabia and Russia are showing a willingness to the increase output cuts agreed to in April, which came into effect from May 1. Moreover, major producers have agreed to cut production by 9.7 million barrels a day in May and June. As a result, investor sentiment seems confident.

Daily Support and Resistance
S1 28.72
S2 30.87
S3 32.22
Pivot Point 33.02
R1 34.36
R2 35.16
R3 37.31

WTI crude oil prices are trading with a bullish bias around 34.25 level, holding just below an immediate resistance level of 34.71 and 36.25 level. On the lower side, WTI prices may find support at 32.55 and 31.47 level. The MACD and RSI are also supporting bullish bias in US Oil. The idea is to trade bullish above 33 to target 34.70 and 35.16 today.

Good luck!