WTI advances to fresh tops beyond $41.00 ahead of API

• Prices of the WTI push higher and retake the $41.00 mark.
• The IEA forecasts a significant drop in global crude stockpiles in Q420.
• The API will release its weekly report on US crude oil supplies later.

Prices of the barrel of the American benchmark for the sweet light crude oil push higher to 3-day peaks beyond the $41.00 mark on Wednesday.

WTI boosted by IEA, looks to supply data

Crude oil adds to Tuesday’s gains and rises above the $41.00 mark per barrel following upbeat comments from the IEA. Indeed, the agency predicted a significant drop in global inventories in the last quarter of the current year and added that crude oil floating storage shrunk by more than139 mb in September.

Prices of the commodity have been regaining ground lost as of late on the back of auspicious results from the Chinese trade data (released on Tuesday), which showed imports of crude oil increased markedly during September. These results paint a rosier picture for crude oil and reinforce the view of a strong recovery of the Chinese economy.

Also adding to the upside in prices, rumours keep gyrating around the possibility that OPEC+ members could postpone their intentions to increase the oil output - originally scheduled for the end of the year - amidst the persistent advance of the second wave of the coronavirus pandemic.

Later in the session, the API will publish its weekly report on US crude oil supplies (-3.36M exp.) ahead of Thursday’s report from the EIA and Baker Hughes’ weekly figures on the US drilling activity on Friday.

WTI significant levels

At the moment the barrel of WTI is up 2.08% at $41.08 and faces the next hurdle at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3). On the other hand, a breach of $39.07 (weekly low Oct.12) would aim for $38.27 (200-day SMA) and then $36.66 (monthly low Oct.2).