- WTI rallies after US stockpile fall for a second straight week, which signed a lighter supply.
- The US -China trade talks will continue this weekend, strengthening the view of demand among the global appetite.
- The WTI approached the main psychological $ 60.00 resistance to the zone, with a 20-day SMA and 23.6% level of fib as major hurdles to achieve more.
WTI Crude Oil is trading higher on Thursday as oil prices benefit from incorporating US-China's (US) stocks to the collapse of the upcoming US-China trade conversations, which has increased the hope of a potential de-escalation in tensions between the two largest economies worldwide.
At the time of writing, the WTI reached 2.83% to $ 59.33, extending its rebound from the previous lows and recovering the land lost in April.
US inventors posted a second weekly collapse, tight views
This week's rally has been -fueled by a subsequent drawdown of the inventory, strengthening the signs of a tight US oil market.
On Tuesday, the American Petroleum Institute (API) – an industry body that releases early supply estimates – reported that crude oil stocks have dropped 4.49 million barrels for the week ending May 3, more than expected 2.5 million barrel drawings. It followed a surprise 3.76 million barrel that was building last week.
Official data from the US Energy Information Administration (EIA) released Wednesday showed a 2.03 million barrel dropping, slightly lower than consensus forecasts. This is the second consecutive weekly collapse following a 2.696 million barrels drawing last week. Despite the lower-than-anticipated government figures, back-to-back denial proves strict supply or improving demand, both supporting higher prices.
US -China trade talks ask for optimization
On Tuesday, the US government confirmed that Treasury Secretary Scott Bescent and trade representative Jamieson Greer would travel to Switzerland this weekend to meet with Chinese officials, who have marked the first formal trade negotiation for more than three months.
The announcement has strengthened the sentiment in the market, as entrepreneurs interpret the conversations as a signal that may ease tariff pressure. Any development towards improved industry relations or reduced trade barriers are likely to strengthen global crude demand, especially given China's role as the largest oil -imported tag.
OPEC+ policy remains a stabilized backdrop
While not a fresh development, OPEC+ output policy continues to undergo market expectations. On Saturday, major coalition manufacturers, including Saudi Arabia and Russia, agreed to raise production of 411,000 barrels per day in June as part of a gradual rollback of previous spontaneous cuts.
However, the group emphasized that the decision remains flexible, which adjustments are possible if market conditions worsen. OPEC+ will re -evaluate its policy at its next meeting on June 1, and reiterate its promise to avoid excessively.
WTI challenges $ 60.00 psychological barriers
Crude oil in WTI trades near $ 59.35, pushing a major resistance zone as momentum improves. The immediate reversal was trapped to a $ 60.00 psychological level, which also aligned near the 20-day transfer of the average to $ 60.58 and the 23.60% of Fibonacci contraction of 2025 decline. This cluster around $ 60.00- $ 60.60 marks a critical test for bulls.
A long breakout above this zone will open the door to the downfall resistance near $ 62.00, followed by a 38.20% retraction to $ 64.18. On the downside, the initial support lies at $ 58.00, with additional purchase interest expected of $ 56.00, and the main support that rests at the recent low $ 54.79.
The Kamag -Child Index Index (RSI) is higher than 43.23, showing the fading bearish momentum but still lacking confirmation of a full bullish backbone. A day -to -day -near -$ 60.60 is likely to signal the start of a longer recovery.
Wti crude oil daily chart
Wti oil faqs
WTI oil is a type of crude oil for sale in international markets. WTI stands for West Texas intermediate, one of three main types including Brent and Dubai crude. WTI is also referred to as “light” and “sweet” due to relatively low gravity and sulfur content respectively. It is considered a high -quality refined oil. It is sourced in the United States and distributed by the cushing hub, which is considered “the pipeline crossroads of the world”. It is a benchmark for the oil market and the price of WTI is often quoted in the media.
Like all owners, supply and demand are the major WTI oil price drivers drivers. As such, global growth can be a driver of increasing demand and vice versa for vulnerable global growth. Political, war, and penalties can interfere with supply and impact prices. OPEC decisions, a group of major oil -producing countries, are another major price driver. The cost of the US dollar influences the price of crude oil in the WTI, as the oil is predominantly exchanged with the US dollar, thus a weaker US dollar can make the oil and vice versa.
The weekly oil inventory report published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) affect WTI oil prices. Changes in inventory reflect on changing supply and demand. If the data shows a collapse in the inventory it may indicate an increase in demand, pushing the oil price. Higher inventures may reflect the increase in supply, pushing prices. The API report has been published every Tuesday and the EIA day. Their results are usually similar, falling within 1% of each to 75% of the time. EIA data is considered more reliable, as it is a government agency.
The OPEC (Organization of the Petroleum Exporting Country) is a group of 12 oil-producing oils that work together to decide on production quotas for members of the country twice the annual meeting. Their decisions often affect WTI oil prices. When OPEC decides to lower the quotas, it can tighten the supply, pushing oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group with ten extra non-OPEC members, the most prominent of which is Russia.
