WTI in 2018 highs above $71.00 on EIA

• Crude oil prices move above $71.00 post-EIA report.
• WTI trades in levels last seen in November 2014.
• US crude oil supplies dropped by almost 2.2 mbpd last week.

Prices of the barrel of the American reference for the sweet light crude oil are extending the rally above the $71.00 mark today, recording at the same time fresh YTD peaks.

WTI higher on upbeat EIA

Prices of the black gold are moving higher today after the EIA reported US crude oil supplies decreased more than initially estimated by 2.197 mbpd during the week ended on May 4.

In addition, Weekly Distillate Stocks dropped by 3.791 mbpd and Gasoline inventories went down by 2.174 mbpd, both readings also bettering prior surveys.

Furthermore, supplies at Cushing increased by 1.388 mbpd, adding to last week’s 0.416 mbpd build.

In the meantime, the upbeat sentiment prevails around crude oil following yesterday’s announcement by President Trump on the US withdrawal from the Iran nuclear deal and the likelihood of further sanctions against the major Middle East producer. Trump, however, expressed his willingness to negotiate with Iran.

WTI significant levels

At the moment the barrel of WTI is up 1.38% at $71.08 facing the next up barrier at $71.27 (2018 high May 9) followed by $72.00 (psychological level). On the downside, a breach of $68.91 (10-day sma) would aim for $68.25 (21-day sma) and finally $66.86 (low May 1).