Brent Oil was trading 0.35% up at $73.78.
Oil was up Wednesday morning in Asia, boosted by a draw in U.S Crude supplies that reinforced expectations that fuel demand will outstrip supply growth. However, increasing numbers of COVID-19 cases globally capped the black liquid’s gains.
Brent Oil Futures gained 0.65% to $74 by 11:26 PM ET (3:26 AM GMT) after shedding 2 cents during the previous session in its first decline in six days. WTI Futures rose 0.77% to $72.20, reversing its 0.4% decline on Tuesday.
Forecasts prepared by Investing.com had predicted a 3.433-million-barrel draw, while a build of 806,000 barrels was reported during the previous week.
“Most energy traders were unfazed by the previous week’s build, so expectations should be high for the EIA crude oil inventory data to confirm inventories resumed their declining trend,” OANDA analyst Edward Moya said in a note.
The API data also said Gasoline inventory fell by 6.226 million barrels.
“The U.S. is still in peak driving season and everyone is trying to make the most of this summer,” Moya said in his note.
Global inventories are expected to tighten through the remainder of 2021 as key countries in the market continue their economic recovery from COVID-19. However, surging numbers of cases involving the virus’ Delta variant has led many countries to reimpose restrictive measures and the black liquid is set to record its second monthly loss since October 2020.
On the technical front Brent Oil , RSI Stood at 50.909, the current price is trading Above the Moving Averages 20 & 50 . So, a Buy trade can be executed with the following target and stop-loss:
TRADE SIGNAL- Brent Oil– BUY: 73.80, TARGET:-63.80, STOP LOSS:- 78.80.
