OPEC raised the demand; Oil gained the momentum
While today investors are awaiting crude oil supply data from the U.S. Energy Information Administration (EIA), to realize later today, last night The American Petroleum Institute (API ) reported the inventory levels of U.S. crude oil, and it shows the decrease of 2.533 barrels for the week ending May 7. The expectation for the same period was the 2.250-million-barrel draw, and the week before, API reported a 7.688-barrel decrease.
On the other hand, yesterday, the Petroleum Exporting Countries (OPEC) Organization published its monthly outlook and held its optimistic comment about the demand outlook. For now of 5.95 million barrels per day (bpd) raise is expected in global demand, as China and the United States continue a strong recovery from the pandemic. However, OPEC`s outlook for the next quarter is expected to see a 300,000 decrease in demand, as COVID-19 is hurting the Indian economy. It will affect the country`s demand, as the third biggest Oil user in the world.
The increase in U.S. inventory numbers is for the week before Colonial Pipeline`s cyberattack, which means for this week, which data supposed to be published next week, we can not be that much optimistic. Based on different reports, some of the gas stations in the northeast of the United States, already shutting down, as there is not enough supply after Colonial Pipeline`s cyberattack. However, Officials stayed committed to restoring service in the next few days.
The official numbers that are supposed to be released later today, the market expects a 2.817Mb fall, after a 7.990Mb decrease of the week before. Ahead of data, West Texas Intermediate (WTI) is trading 65.62 (+0.67%), and Brent oil futures inched up 0.66% to $69.00.
Technically in the intraday charts, it is an uptrend, and technical indicators supporting the current trend. RSI at 61, a price above both M.A. lines and EMA crossing strategy, also supports the movement, while it is above the OBV trend line. The critical levels for the asset sit at:
Pivot point: 64.80
Resistance levels: 65.90 / 66.55 / 67.70
Support levels: 64.20 / 63.05 / 62.40
