Futures on US West Texas Intermediate Crude Oil hit a fresh two-week high on Thursday, as US crude oil inventories dropped to levels not seen since January 2020. At the same time, Brent Oil once again regained ground above $75 per barrel.
Brent prices moved past the $75 mark for the first time in over two years in late June, but plunged suddenly earlier in July due to concerns stemming from the spread of COVID-19’s Delta variant and after a compromise deal by key OPEC producers to bolster supply.
Yesterday an official report by the US Energy Information Administration showed that crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), had decreased by 4.089 million barrels during the week ended on July 23rd. In comparison, analysts on average had anticipated a drop by 2.928 million barrels.
US gasoline stocks decreased by 2.253 million barrels last week, or at a much faster pace compared to market expectations (a drop by 0.916 million barrels).
“The (oil inventory) falls suggest the rise in cases of COVID-19’s Delta variant is having little impact on mobility,” ANZ analysts wrote in an investor note.
Meanwhile, in a policy statement yesterday the Federal Reserve said that US economic recovery was still on track regardless of surging new COVID-19 cases and also stressed on ongoing talks surrounding the eventual scale back of monetary stimulus.
On the other hand, there still remain certain concerns over fuel demand, with analysts noting that internationally, pre-pandemic demand levels may not be reached until beyond 2022 if virus infections and slow vaccination campaigns further entrench structural changes in demand.
As of 8:10 GMT on Thursday WTI Crude Oil Futures were gaining 1.19% to trade at $73.25 per barrel, after earlier touching an intraday high at $73.27 per barrel. The latter has been the commodity’s strongest price level since July 14th ($75.44 per barrel). WTI Crude Oil Futures have retreated 0.35% so far in July, following a 10.78% surge in June.
At the same time, Brent Oil Futures were gaining 0.94% on the day to trade at $75.44 per barrel, after earlier touching an intraday high at $75.52 per barrel. The latter has been the black liquid’s strongest price level since July 14th ($76.68 per barrel). Brent Oil Futures have risen 1.15% so far in July, following another 7.49% surge in June.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $72.23
R1 – $72.76
R2 – $73.13
R3 – $73.66
R4 – $74.19
S1 – $71.86
S2 – $71.33
S3 – $70.96
S4 – $70.59
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $74.82
R1 – $75.20
R2 – $75.66
R3 – $76.04
R4 – $76.42
S1 – $74.36
S2 – $73.98
S3 – $73.52
S4 – $73.06
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
