Crude oil WTI bulls are looking at $64.50 amid Wall Street optimism

• The risk-on mood with Wallstreet back in green underpins the crude oil. 
• The EIA data shows a draw of -4.617 million barrels versus 0.246 mb forecast by analysts boosting the commodity.

The crude oil WTI is trading at around $63.54 virtually unchanged (but strongly rebounded) on Wednesday as investors decided to dismiss the trade war tensions between the US and China for the time being. 

The wave of positive sentiment seen in Wall Street, with the three main indices blasting off their yearly lows, also benefitted the black gold as bulls found support at the $62.30 support discussed yesterday (Tuesday) and are now facing resistance close to the $63.72 resistance. 

Earlier in the North American session, the Energy Information Administration (EIA) released its weekly report and the numbers showed a strong draw in oil stocks seen at -4.617 million barrels versus 0.246 million barrels forecast by analysts. The news was music to the ears for oil bulls who earnestly bought crude oil futures contracts just after the bullish EIA data. 

Meanwhile, Bahrain confirmed that it found an estimated 80 billion barrels. The discovery dwarfs current Bahrain’s production which is at 45,000 barrels per day onshore and at 160,000 in an offshore field shared with Saudi Arabia.   

Crude oil WTI weekly chart

The market is evolving in a bullish channel and the bulls are trying to get above last week’s low at $63.72. 

Crude oil WTI daily chart

The market dipped just below the $62.30 support to find strong buying interest. The $63.72 resistance needs to be broken if the buyers want to see continuous bull momentum.

Crude oil WTI 4-hour chart

The bulls managed to orchestrate a strong reversal and the next hurdle before seeing higher prices is the $63.72 as mentioned above. The next resistance is sight is seen at $64.53 swing low and $65.08 supply level. To the downside, support is seen at $62.78 swing low and at $62.30 and $61.13 demand levels.