WTI jumps to daily highs post-EIA, above $53.00

Crude oil prices has quickly reverted its negative tone on Wednesday, lifting the barrel of Wes Texas Intermediate to fresh tops in the mid-$53.00s.

WTI higher despite EIA report

Prices for the WTI leapt to daily peaks despite the EIA’s weekly report showed crude oil inventories increased by more than 2.8 million barrels during last week, more than initially estimated.

Further data saw supplies at Cushing down by nearly 300K barrels while Gasoline stockpiles rose by almost 6.8 million barrels, much more than forecasted.

However, crude oil prices stay under pressure as market traders remain vigilant on the compliance from OPEC and non-OPEC countries regarding the deal to limit the output clinched in November.

In addition, the recent pick up in the US drilling activity has prompted the spectre of the supply glut to re-emerge, as US shale production could intensify its rebound and weigh on the intended rebalancing of the market.

WTI levels to consider

At the moment the barrel of WTI is up 0.49% at $53.41 facing the next resistance at $53.56 (high Jan.24) followed by $54.32 (high Jan.6) and finally $55.24 (2017 high Jan.3). On the downside, a break below $52.56 (low Jan.25) would expose $50.85 (55-day sma) and then $50.71 (low Jan.10).