Crude Oil Posts Largest Gain Since August as API Reports Supply Drop
- WTI crude oil rose 6 percent after API reported surprise inventory drop
- Expectations call for official EIA data to show 2505k stockpile increase
- Technical positioning hints the focus may now be on $50/barrel figure
WTI crude oil gained nearly six percent as the American Petroleum Institute (API), the largest trade association for the industry, said supplies dropped by 1.2 million barrels in its weekly inventory report. The move marks the largest price advance in six weeks, delivering the highest closing price since late July for the commodity.
Crude oil prices fell from June to August of this year, losing 36 percent. A supply glut on the back of robust US and OPEC production as well as a stronger US Dollar have been tipped as the likely drivers behind the decline.
Looking ahead, the Energy Information Administration (EIA) will release official inventory figures tomorrow. The consensus estimate calls for an increase of 2505k barrels. DailyFX Analyst Tyler Yell says a break above chart resistance has put the $50/barrel figure in focus.
Want to tailor forex research and analysis to your personality? Take our quick survey.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.