Crude Oil News Today: WTI Oil Tests Key Resistance Ahead Of Non Farm Payrolls Report

WTI oil prices are up by almost 3% this week as traders focus on strong demand during the summer driving season and falling crude inventories.

The recent EIA report indicated that crude inventories declined by 12.2 million barrels from the previous week, providing significant support to oil markets.

Rising geopolitical tensions served as an additional positive catalyst for oil prices this week. There are no signs of de-escalation in the Middle East, which is bullish for oil markets. However, it should be noted that Middle East tensions did not lead to any material disruptions in oil supplies and mostly provided psychological support to the bulls.

According to a recent Reuters report, Russian oil companies Rosneft and Lukoil will cut oil exports from Novorossiisk, a key port in the Black Sea. Reuters noted that exports are expected to fall by 220,000 bpd.

From a big picture point of view, strong summer demand for oil exceeded expectations and provided significant support to oil markets since the beginning of June. WTI oil is up by more than 15% from lows that were reached on June 4.

Today, oil traders will focus on the Non Farm Payrolls report, which will provide important information on the U.S. job market. Analysts expect that Non Farm Payrolls declined from 272,000 in May to 190,000 in June. A strong report may provide additional support to oil prices as it will highlight the strength of the U.S economy. Unemployment Rate, which may also have a material impact on market dynamics, is expected to stay at 4%.

From the technical point of view, WTI oil continues its attempts to settle above the resistance at $83.50 – $84.50. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If WTI oil manages to climb above the $84.50 level, it will head towards the next significant resistance, which is located in the $87.00 – $87.50 range.

For a look at all of today’s economic events, check out our economic calendar.