FXStreet (Mumbai) – Crude prices in the US rose after the weekly government data in the US showed a larger than expected drawdown in the inventories.
Front month WTI futures contract rose from USD 52.20/barrel to trade around USD 52.70/barrel. The Energy Information Agency data showed crude stockpiles declined by 4.346m, beating the estimated decline of 1.1158m. The American Petroleum Institute had shown a drawdown of 7.3m barrels last night.
The gains in crude prices are being capped to some extent by the strength in the USD index, which trades 0.35% higher at 97.16. The USD strengthened after Fed chairwoman Yellen, in her semi-annual testimony, reiterated that interest rates could rise this year if the economy continues to improve.
WTI Crude Technical Levels
The immediate resistance is located at the daily high of 53.40, above which the prices could rise to 53.93 (previous session’s high). On the other hand, a break below the immediate support at 51.94 could push the prices down to 50.90.
(Market News Provided by FXstreet)