All in all, it’s been a quiet week for February WTI crude oil futures. However, prices are firmly in bullish territory just beneath $48.00 per barrel. With the weekly inventory cycle due up in the next 24 hours, WTI may be on the verge of a pre-2021 return to $50.00. 

Later on this afternoon, the American Petroleum Institute (API) will release its weekly inventory stats to the public. Last Tuesday showed a solid build in supplies, with official API figures coming in at +2.7 million barrels. Given the typical spike in holiday travel demand, it will be surprising to see a positive report for this week.

Tomorrow morning’s U.S. Energy Information Administration (EIA) release will be the last for 2020. The EIA’s numbers are expected to continue last Wednesday’s decline, sliding to -2.100 million barrels. In reality, this may be a conservative estimate as regional COVID-19 lockdowns are playing big into projections.

Internationally, reports are breaking from the Middle East that Iran is considering “cutting the power” that it supplies to Iraq. According to Iranian officials, such a move may come in response to a large outstanding Iraqi debt. In an attempt to remedy the escalating situation, Iranian energy minister Reza Ardakanian has traveled to Baghdad for negotiations.

For now, February WTI crude oil is stable. Let’s take a look at the key technicals going into the weekly inventory cycle.

WTI Crude Oil Futures Consolidate Near $48.00

Energy traders appear to have taken a 48-hour break ahead of the New Year’s holiday. Nonetheless, traded volumes of February WTI crude oil are approaching a respectable 200,000 intrasession contracts.

Overview: Accurately projecting market participation during a holiday week is a challenge. However, if tensions continue to escalate between Iran and Iraq, WTI crude oil, Henry Hub natural gas, and refined fuel futures will likely jump. In addition to inventories, it would be wise to keep a close eye out for breaking news coming from the Middle East.