WTI Crude Give Up Early Gains As Supply Increases – Outlook Cautious
Feb, 27th 10:26
WTI crude prices on Tuesday erased earlier gains as investor concerns about rising U.S. oil output offset signs of stronger demand and faith in the ability of OPEC production curbs to curtail supply.
U.S. West Texas Intermediate (WTI) crude for April delivery was down 15 cents, or 0.2 percent, at $63.76 a barrel by 0532 GMT. The contract on Monday rose to its highest since Feb. 6 at $64.24. Brent crude in London was down 10 cents, or 0.2 percent, at $67.40 a barrel.
Soaring U.S. production is upending global oil markets, coming at a time when other major producers – including Russia and members of the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) – have been withholding output to prop up prices.
Earlier on Tuesday prices gained, extending multi-day rises for both crude futures. Last week, the U.S. Energy Information Administration (EIA) said there was a surprise draw on oil stockpiles amid a drop in imports and a surge in exports.
On the technical charts, WTI crude is trading in the negative zone above all the moving averages. The RSI is at 57.09 and the MACD is above the signal line.
Buy digital Put options between 63.70 and 63.44, valid until 23:00 GMT February 27th 2018