Crude oil price is trading higher as the market reacts to the lower-than-expected US inventories data from API. On Tuesday, the institute indicated that the weekly oil stockpiles had fallen by 3.608 million barrels compared to the forecasted decline of 2.154 million barrels. Investors are now keen on whether EIA will confirm the trend later in the day. Analysts expect a reading of -2.889 million, which is higher than the previous week’s -3.522 million barrels.
Furthermore, in its monthly report, the IEA has adjusted its forecast for the current year’s global oil demand by 230,000 bpd. Subsequently, it estimates that the demand will rise by 5.7 million bpd. OPEC too has adjusted its estimates for annual global oil demand by 100,000 bpd. These adjustments, coupled with the hurdles in the nuclear deal discussions between Iran and the US have supported crude oil price.
Crude Oil Price Technical Outlook
Crude oil price is trading higher following the better-than-expected US inventories data. On a three-hour chart, WTI futures are trading above the 25 and 50-day exponential moving averages. The benchmark for US oil is up by 1.19% at 61.16.
Notably, the bulls in the market are eyeing $62, which has been a major, and often evasive, resistance level. However, crude oil price is likely to trade close to $61 in the near time in anticipation of adequate buying pressure to push it higher. Besides, investors will be keen on whether EIA’s US inventories data will fuel a bullish breakout past $62. On the flip side, the bears may try to place the support level back to $60.