Futures on US West Texas Intermediate Crude Oil extended gains from the prior several trading days on Thursday, while hitting highs not seen since late February, after a government report revealed a drop in weekly US crude oil inventories. Media reports of progress being made on US fiscal stimulus deal provided some additional support.
A report by the US Energy Information Administration (EIA) showed on Wednesday that crude oil inventories had decreased by 3.135 million barrels during the week ended December 11th after a 15.189 million rise in the preceding period. In comparison, analysts on average had expected a 1.937 million decrease in inventories last week.
Additional support for oil prices came after reports stated US lawmakers were getting closer to a deal involving a $900 billion coronavirus relief package, with leading Democrat and Republican representatives sounding more optimistic than before.
“All the headlines have been bullish for oil prices,” Edward Moya, senior market analyst at OANDA, was quoted as saying by Reuters.
“U.S. stockpiles posted a larger-than-expected draw, three of India’s refiners are operating almost at 100% capacity, indicating crude demand remains strong, and it seems the U.S. will continue to deliver more monetary and fiscal stimulus, sending the dollar lower and most commodities higher.”
“The last full trading week of the year has been very bullish for crude prices as energy traders focus more on the light at the end of the COVID tunnel and as Asian demand remains strong,” OANDA’s Moya also noted.
As of 10:31 GMT on Thursday WTI Crude Oil Futures were gaining 0.90% to trade at $48.25 per barrel, after earlier touching an intraday high of $48.80, or its strongest level since February 26th ($50.44 per barrel). WTI Crude Oil Futures have risen 6.57% so far in December, following another 26.68% surge in November, the biggest since May.
Brent Oil Futures were gaining 0.39% on the day to trade at $51.26 per barrel, after earlier touching an intraday high of $51.88, or its strongest level since March 5th ($52.00 per barrel). Brent Oil Futures have risen 7.64% so far in December, following another 25.83% surge in November, or the biggest since May.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $47.64
R1 – $48.12
R2 – $48.41
R3 – $48.89
R4 – $49.36
S1 – $47.35
S2 – $46.87
S3 – $46.58
S4 – $46.28
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $50.87
R1 – $51.37
R2 – $51.67
R3 – $52.17
R4 – $52.66
S1 – $50.57
S2 – $50.07
S3 – $49.77
S4 – $49.46