API has printed a solid build-up of US oil inventories at 7.8 million barrels.
The impact of additional oil supply by the US and IEA seems to fade away.
West Texas Intermediate (WTI), futures on NYMEX, has recaptured the $100.00 mark as the Chinese administration has lifted some of its lockdown curbs, which were imposed to contain the Covid-19 epidemic in Shanghai city. The black gold has witnessed a sheer upside after sensing a decent buying interest from Mondays low at $92.65.
It seems that the announcement of additional oil supply by the US administration and International Economic Agency (IEA) out of their Strategic Petroleum Reserve (SPR) has faded away. Earlier, the US administration and IEA announced an oil supply of 180 and 60 million barrels respectively. To offset the cut of one million barrels of oil per day (bpd) from Russia due to sanctions imposed by Western leaders, the collective leakage of 1.3 million bpd by the US administration and IEA may bring price stability.
Also, the WTI bears failed to capitalize on the solid build-up of oil stocks reported by the American Petroleum Institute (API). On Tuesday, the API reported that the US oil inventories rose by 7.8 million barrels, outperforming the previous figure of 1.08 million barrels.
For further guidance, the oil inventory report from the Energy Information Administration (EIA) will hold significant importance. The oil inventories are likely to land at 1.367 million barrels against the previous print of 2.421 million barrels.
