Oil Reaches Fresh 10-Month Highs Amid Output Disruptions
Oil prices rose to fresh 10-month highs on Wednesday, as a drawdown in US stockpiles and output disruptions in Nigeria helped to ease supply glut concerns.
West Texas Intermediate crude oil for July rose 1.7% and settled at $51.23 a barrel, after peaking at $51.34/bbl.
The EIA report released this Wednesday showed that oil reserves decreased by 3.2 million barrels in the week ending June 3rd, beating expectations for a 2.7 million barrels’ decline. WTI, however, pared gains on news that US production has increased for the first time in thirteen weeks.
Also, further woes in Nigeria kept the commodity up, as rebels in the country said to have blown up a Chevron oil well.
WTI technical perspective
“Light, sweet crude closed the day above $51.00 a barrel, and the daily chart presents a strong upward tone, given that the price has accelerated its advance above a bullish 20 SMA, whilst the technical indicators head higher well into positive territory,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the technical indicators are now exhausted towards the upside, partially retreating from overbought levels, but also that the price is well above its moving average, supporting some additional gains for this Thursday.”
Support levels: 50.90 50.20 49.50. Resistance levels: 51.65 52.20 53.00.