WTI Crude Rises On Friday but weekly drop as concerns about rising supply weigh
Mar, 16th 13:29
WTI crude earned in both benchmarks on Friday, on concerns among investors about rising supply from the U.S. and elsewhere threatening to undermine efforts by OPEC and other producers to tighten the market.
West Texas Intermediate (WTI) oil futures for April delivery had risen 5 cents, or 0.1 percent, to $61.24 a barrel by 0744 GMT, after settling up 23 cents on Thursday. WTI was set to fall 1.3 percent this week, reversing the previous week’s 1.3 percent gain.
Brent crude futures trading in London climbed 6 cents to $65.18 a barrel, after settling up 23 cents. Brent was down 0.5 percent for the week.
Several reports this week renewed investor focus on the potential for rising supply to overwhelm the expected gains in crude demand for 2018.
On Thursday, the International Energy Agency (IEA) said global oil supply increased in February by 700,000 barrels per day (bpd) from a year ago to 97.9 million bpd.
The IEA also said supply from producers outside of the Organization of the Petroleum Exporting Countries (OPEC), led by the United States, would grow by 1.8 million bpd this year versus an increase of 760,000 bpd last year.
The supply increase is more than the IEA’s expected demand growth forecast for this year of 1.5 million bpd.
On the technical charts, WTI crude is trading in the positive zone below the 9 day, 20 day, 50 day and 200 day moving averages but above the 100 day moving average. The RSI is at 47.51 and the MACD is below the signal line.
Buy digital Call options between 61.42 and 62.00, valid until 23:00 GMT March 16, 2018