WTI rallies 1% on US output decline
Oil futures on NYMEX prolongs its upward trajectory for the sixth straight session on Thursday, as the bulls benefit from the ongoing USD weakness and slightly upbeat EIA crude inventory report.
The black gold regained $ 45 mark to now trade in close proximity to the highest levels reached since June 14th at $ 45.23. Oil remains poised to book the first weekly rise in six weeks.
The steady rise in the prices is on the back of the EIA crude stockpiles report released yesterday, which showed that the US crude inventories rose 118,000 barrels last week, however, the weekly production witnessed the biggest decline in weekly output since July 2016, down by 100,000 barrels per day (bpd) to 9.3 million bpd.
Despite the recent recovery-mode in oil prices, markets remain wary as they believe further upside remains limited amid rising US shale output and concerns whether the OPEC output cut deal extension is enough to rebalance oil markets.
At the time of writing, WTI rallies +1% to $ 45.19, while Brent jumps +0.93% to test $ 48 mark.
WTI technical levels
Higher side: $ 45.50 (psychological levels), $ 46 (zero figure), $ 46.19 (Jun 14 top)
Lower side: $ 44.56 (20-DMA), $ 44.17 (5-DMA), 43.67 (Jun 28 low)