Crude oil price is trading higher as investors await the EIA’s short-term energy outlook (STEO). WTI is up by 2.25% at $60.10 while Brent has risen by 1.58% at $63.12. In the March STEO, the agency estimated that the benchmark for global oil would average at $64 in Q2’21.
Investors await the reaction of crude oil price to April’s STEO. This is after OPEC+ announced that it would begin pumping more oil into the market from May. The alliance intends to gradually increase supply by 2 million bpd between May and July.
Besides, EIA is scheduled to release its weekly numbers on US crude oil inventories on Wednesday. In the previous release, stockpiles dropped by 0.876 million barrels. In the last week, analysts expect the inventories to have fallen by 1.325 million barrels.
WTI futures are back up past $60 after plunging to around $57.60 in Monday’s session. On Tuesday, the benchmark for US oil was up by 2.25% to trade at $60.10. On a 2-hour chart, it is trading along the 50-day exponential moving average and slightly above the 20-day EMA.
Depending on the EIA short-term energy outlook, crude oil price is likely to test $62. That remains an important resistance level that the commodity has failed to break out of since mid-March. Subsequently, it will probably drop to $60. A decline beyond that point will have the bears retest $57. However, a breakout past $62 will place the next target at $64.
