Futures on US West Texas Intermediate Crude Oil rose on Thursday following a slight retreat the prior day, as US crude oil stocks decreased at a sharper rate than anticipated last week due to a surge in refining output and exports.
An official report by the US Energy Information Administration showed on Wednesday that crude oil inventories had dropped by 7.99 million barrels to 485.1 million barrels during the week ended on April 30th, or at a much faster rate compared to what analysts on average had anticipated – a decrease by 2.346 million barrels.
Meanwhile, US gasoline inventories rose by 0.737 million barrels last week, against market expectations of a 0.652 million barrel drop.
According to Citigroup analysts, the relaxation of coronavirus-related restrictive measures in the United States and parts of Europe has triggered an increase in demand for fuel.
“As the roll-out of vaccines continues and a pent-up summer driving season continues to manifest, this trend should accelerate, keeping demand for motor fuels robust and boosting market confidence in the recovery story,” the analysts wrote in an investor note.
On the other hand, a surge in new COVID-19 infections in key oil importers such as India and Japan was restraining oil price gains.
As of 8:35 GMT on Thursday WTI Crude Oil Futures were edging up 0.11% to trade at $65.70 per barrel, while moving within a daily range of $64.98-$65.98 per barrel. Yesterday the commodity rose as high as $66.76, or its strongest price level since March 8th ($67.98 per barrel). WTI Crude Oil Futures have risen 2.77% so far in May, following another 7.47% surge in April.
Brent Oil Futures were edging up 0.29% on the day to trade at $68.72 per barrel, while moving within a daily range of $68.36-$69.34 per barrel. Yesterday Brent Oil rose as high as $69.92, or its strongest price level since March 15th ($70.00 per barrel). Brent Oil Futures have risen 3.25% so far in May, following another 5.74% surge in April.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $65.77
R1 – $66.62
R2 – $67.61
R3 – $68.46
R4 – $69.31
S1 – $64.78
S2 – $63.93
S3 – $62.94
S4 – $61.95
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $68.93
R1 – $69.51
R2 – $70.49
R3 – $71.07
R4 – $71.64
S1 – $67.95
S2 – $67.37
S3 – $66.39
S4 – $65.40