WTI surrenders gains post-EIA, back near $51.30

Crude oil prices have faded part of the initial advance after the EIA’s weekly report on Wednesday, with the West Texas Intermediate retreating to the $51.30 area per barrel in the wake of the release.

WTI deflates from tops on EIA

Prices for the WTI eased from daily tops after the EIA’s weekly report showed US inventories unexpectedly increased by nearly 1.6 million barrels during the week ended on March 31.

Further data saw Distillates Stocks decreasing by more than 0.5 million barrels while Gasoline Inventories dropped by just over 0.6 million barrels. In addition, supplies at Cushing rose by just above 1.4 million barrels.

WTI has quickly retreated from earlier multi-week peaks below the $52.00 mark following the report, although it remains supported by rumours of a potential extension of the ongoing OPEC deal beyond June.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.55% at $51.27 facing the immediate hurdle at $51.88 (high Apr.5) followed by $53.80 (high Mar.6) and finally $54.94 (high Feb.23). On the downside, a break below $49.88 (low Apr.4) would aim for $48.94 (20-day sma) and then $48.74 (200-day sma).