West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices continues its retreat from the 11-month highs hit last week, as investors worry on the new pandemic restrictions in China which may curb fuel demand in the world’s biggest oil importer.
The market is now waiting for the official oil inventory data from the U.S. Energy Information Administration on Friday after industry data on Wednesday showed a surprise 2.6-million-barrel increase in U.S. crude inventories last week compared with analysts’ forecasts for a 1.2-million-barrel draw.
The EIA weekly report has been delayed by two days due to the Martin Luther King Jr. holiday and Inauguration Day.
From a technical perspective, with the topside target at $54.30-80 intact should keep the bears in a prime position on taking the challenge to $49.40.
A close beneath this level would negate the bullish call and instead, potentially reinstate a bearish bias for a move to $44.90-00.