WTI Crude Price Steady after U.S. Climb Helps Drive Plunge – U.S. Output still Weighs
Mar, 08th 13:20
WTI crude prices steadied on Thursday, supported by healthy demand, after falling the previous day on the back of record U.S. crude production and rising inventories.
Brent crude futures were at $64.46 per barrel at 0506 GMT, up 12 cents, or 0.2 percent, from their previous close. That slight rise came after a more-than-2 percent fall the previous day.
U.S. West Texas Intermediate (WTI) crude futures were at $61.26 a barrel, up 11 cents, or 0.2 percent. WTI also fell by more than 2 percent the previous session.
The slight recovery on Thursday came amid a U.S. crude inventory build that was not as big as expected during the current seasonal demand lull at the end of winter when many oil refineries shut down for maintenance.
Losses for crude intensified Wednesday as U.S. stocks tumbled toward session lows — the two assets have been moving in tandem. Prompting more losses for oil, the U.S. Energy Information Administration reported a 2.4 million-barrel climb in domestic crude supplies for the week ended March 2.
Total U.S. crude production continued to climb to a fresh weekly record — up 86,000 barrels in the latest week to 10.369 million barrels a day, EIA data showed.
The next data point for oil investors will be Friday’s weekly rig data from Baker Hughes. That data should provide clues to future output, seen as topping Russia over the next several years to make America the world’s biggest oil source.
On the technical charts, WTI crude is trading above the 100 day EMA but below the 9 day, 20 day, 50 day, and 100 day moving averages. The RSI is at 44.82 and the MACD is below the signal line.
Buy digital Call options between 61.16 and 61.40, valid until 23:00 GMT March 8, 2018