Weekly Crude Oil Review: WTI Crude Well Supported Despite Volatile Equities

29 Jan 2022 , 12:59 PM

WTI Crude oil futures continued to stay well supported. The WTI Crude oil futures edged up from a one week low and heavy selling pressure in US equities has not made much of an impact on the commodity as traders are looking at near term demand supply dynamics rather than the imminent increase in the US interest rates in the coming months. Many European countries have lifted or relaxed Covid-19 restrictions even as daily infections continued to surge in some placed. In the US, the number of recorded cases and the number of patients with Covid-19 in hospitals slipped further too. This is pushing oil towards seven year highs yet again as WTI Crude oil futures moved up above $87 per barrel. MCX Crude oil saw sustained upside resistance around Rs 6670 per barrel mark. Meanwhile, the US crude-oil inventories edged up last week as refinery activity dropped to the lowest since early November, according to data released Wednesday by the Energy Information Administration (EIA). The Crude oil stockpiles rose by 2.4 million barrels to 416.2 million barrels, and remain about 8% below the five-year average, the EIA said. Oil stored at Cushing, Okla, the delivery point for US stocks, fell by 1.8 million barrels from the previous week, to 31.7 million barrels. The US crude oil production fell by 100,000 barrels a day from the previous week to 11.6 million barrels a day, according to the EIA.

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