Futures on US West Texas Intermediate Crude Oil extended gains on Thursday, after US gasoline inventories dropped for a second straight week, while successful vaccine roll-outs added to economic outlook optimism. On the other hand, US crude oil inventories rose for a third straight week following the mid-February deep freeze in Texas.
An official report by the US Energy Information Administration (EIA) showed yesterday that US gasoline stocks had decreased by 11.869 million barrels to 231.6 million barrels during the week ended on March 5th, while exceeding a consensus of analyst estimates of a 3.467 million drop.
At the same time, US crude oil inventories were reported to have increased by 13.798 million barrels to 498.4 million barrels during the week ended on March 5th, as the effects from the severe cold front in February were still felt across the country’s oil industry. The median analyst estimate had pointed to a much slower increase in crude stocks, by 0.816 million barrels.
“Gasoline stocks fell… (which) provided the bullish offset and eventually sent oil prices higher on the strong demand for end products, hence an economic recovery,” Stephen Innes, Chief Global Markets Strategist at Axi, was quoted as saying by Reuters.
“Given the powerful signals from the U.S. re-opening narrative, it still suggests that the path of least resistance for oil prices is higher,” he added.
In other news, the US House of Representatives gave its final approval yesterday to one of the most considerable economic stimulus packages in US history – President Joe Biden’s $1.9 trillion coronavirus relief bill.
As of 9:50 GMT on Thursday WTI Crude Oil Futures were advancing 1.40% to trade at $65.34 per barrel, while moving within a daily range of $64.54-$65.42 per barrel. WTI Crude Oil Futures have risen 6.29% so far in March, following a 17.82% surge in February.
Brent Oil Futures were gaining 1.14% on the day to trade at $68.94 per barrel, while moving within a daily range of $68.02-$69.02 per barrel. Brent Oil Futures have risen 7.11% so far in March, following a 17.09% surge in February.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $64.18
R1 – $65.22
R2 – $66.01
R3 – $67.05
R4 – $68.10
S1 – $63.39
S2 – $62.35
S3 – $61.56
S4 – $60.78
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $67.70
R1 – $68.86
R2 – $69.57
R3 – $70.73
R4 – $71.90
S1 – $66.99
S2 – $65.83
S3 – $65.12
S4 – $64.42