FXStreet (Edinburgh) – The barrel of West Texas Intermediate is sharply higher on Tuesday, advancing to the proximity of the critical handle at $60.00.
WTI firmer on mixed output expectations
The barrel of WTI traded initially higher in response to the EIA report published on Monday, stating the US oil output is expected to decrease by 91K barrels/day in July.
In addition, the EIA just released its monthly short-term energy outlook. The agency now sees the barrel of WTI at $55.35 in 2015 and $62.04 in 2016, from previous forecasts at $54.32 and $65.57, respectively. Regarding the US crude output to increase to 9.43 million barrels/day this year (from 9.19 million barrels/day).
The softer tone in the US dollar has also been collaborating with the buoyant tone in crude oil prices, while market participants expect additional reports from the OPEC (Wednesday) and the International Energy Agency (Thursday).
WTI key levels
The barrel of WTI is advancing 3.03% at $59.90 with the initial hurdle at $60.23 (high Jun.9) ahead of $61.71 (high May 18) and finally $61.80 (high May 14). On the downside, a breach of $58.23 (low Jun.9) would open the door to $57.83 (low Jun.4) ahead of $57.72 (low May 29).
(Market News Provided by FXstreet)