- WTI goes from a three-month high at $ 37.17 at the end of the four-day winning streak.
- Weekly API crude oil inventories fell from 8.731 million barrels to -0.483 million barrels.
- The weakness of the US dollar, the optimism surrounding the economic reopening and the hope of an extension of the drop in production by OPEC + favored the bulls.
- EIA data in the spotlight, qualitative catalysts, the American economy are also important.
WTI drops to $ 36.99 at the end of Tuesday’s NYMEX negotiations. In doing so, the energy benchmark paid little attention to the positive weekly price inventory data from the American Petroleum Institute (API). However, the general sense of risk, coupled with the weakness of the US dollar and further expected declines in OPEC + production, allowed the bulls to cool off to a three-month high above $ 37.
According to the latest API weekly stock for the period ended May 29, oil stocks fell -0.483 million barrels compared to the previous addition of 8.731 million barrels.
As the data turned positive, a barrel of black gold returned from a 12-week high of $ 37.17 to $ 36.99 at the end of the US session on Tuesday. The reason could be attributed to the fear of the market closing a large gap between the March 11 high and the March 06 low, $ 36.64 and $ 41.22 respectively.
Despite this, the energy benchmark managed to post a four-day winning streak at the end of the settlement. Reasons for spotting could be the increase in economic recovery in most European countries, as well as the weakness of the US dollar amidst riots at home. Oil prices could also support the first positive signals regarding the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia, mainly known as OPEC +, on June 04.
In the future, traders will keep their eyes on geopolitical and commercial titles for a new boost before the official weekly inventory report from the Energy Information Administration (EIA). Forecasts suggest that official stocks rose 3.3 million barrels from the previous increase to 7,928 million barrels during the week ended May 29.
In addition, the US economic calendar carrying the ISM non-manufacturing PMI, ADP job change and factory orders will also be important to watch.
A daily close beyond March 11, at the high of $ 36.64, allows black gold to close the gap below the March 06 low at $ 41.22. However, RSI’s overbought conditions could trigger a decline to $ 34.90.