15 Jul 2015
Oil keeps moderate gains ahead of EIA weekly report
FXStreet (Mumbai) - Oil benchmarks on both sides of the Atlantic for the second straight session on Wednesday as US crude inventories dropped more than forecast, with traders less worried from the Iranian nuclear deal while awaiting weekly stock piles report from EIA later today.
Oil lifted on China data
Currently, both Brent and WTI trade over 0.20% higher at 58.78 and 53.13 respectively. Oil prices edged higher in the European session as worries over increased Iranian oil eased, with sentiment also boosted by news that US stockpiles fell more than markets had expected, API data showed on Tuesday.
Traders' concerns over the supply glut waned for now as it would take months for Iranian oil to fully return to the market after the country and six world powers clinched a deal.
Moreover, better than expected Chinese growth numbers also boosted oil prices as China is the world’s second largest consumer of oil. China's GDP expanded 7% y/y, the same pace of growth as a quarter before, beating estimates for a 6.8% hike, while an improvement was recorded on a quarterly basis.
While the American Petroleum Institute (API) said on Tuesday that US crude stockpiles fell by 7.3 million barrels for the week to July 10, compared to estimates of just a 2.75 billion fall. The Energy Information Administration (EIA) will report its weekly data later in the day, with markets estimating a 2.75 billion drop.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 53.93 levels above which gains could be extended to 55 levels. Meanwhile, support is seen at 51.96 levels from here losses could be extended to 50.58 levels.
Oil lifted on China data
Currently, both Brent and WTI trade over 0.20% higher at 58.78 and 53.13 respectively. Oil prices edged higher in the European session as worries over increased Iranian oil eased, with sentiment also boosted by news that US stockpiles fell more than markets had expected, API data showed on Tuesday.
Traders' concerns over the supply glut waned for now as it would take months for Iranian oil to fully return to the market after the country and six world powers clinched a deal.
Moreover, better than expected Chinese growth numbers also boosted oil prices as China is the world’s second largest consumer of oil. China's GDP expanded 7% y/y, the same pace of growth as a quarter before, beating estimates for a 6.8% hike, while an improvement was recorded on a quarterly basis.
While the American Petroleum Institute (API) said on Tuesday that US crude stockpiles fell by 7.3 million barrels for the week to July 10, compared to estimates of just a 2.75 billion fall. The Energy Information Administration (EIA) will report its weekly data later in the day, with markets estimating a 2.75 billion drop.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 53.93 levels above which gains could be extended to 55 levels. Meanwhile, support is seen at 51.96 levels from here losses could be extended to 50.58 levels.