FXStreet (Mumbai) – WTI oil futures on the Nymex extends its upbeat momentum in the mid-Asian session and rallies to fresh weekly highs as markets continue to cheer higher crude oil price forecast by the Energy Information Administration (EIA) released on Tuesday.
WTI eyes $61
Currently, WTI trades 1.09% higher at fresh weekly highs of 60.80, finding good support at 60.50. Oil prices extends gains after the latest EIA forecasts showed US crude oil prices to edge higher this year.
The Energy Information Administration said WTI prices should average $55.35 this year, rather than $54.32 as suggested in last month’s projections.
Furthermore, given the boost to this year’s forecast, oil production next year will actually contract 1.7% next year to 9.27 million barrels bpd, the forecast showed.
Moreover, US API weekly crude stocks fell more-than-expected last week, official data showed on Tuesday. In a report, API said that US Weekly Crude Stock fell to -6.700M, from 1.800M in the preceding week.
Meanwhile, the US government is scheduled to deliver its report on Wednesday.
Technical Levels
WTI oil has an immediate resistance which stands at 61.50 levels above which gains could be extended to 62.75 levels. Meanwhile, support is seen at 60 levels from here losses could be extended to 58.20 levels.
(Market News Provided by FXstreet)