WTI rally continues on expectation of fall in distillates inventory. Today Energy Information Administration will release inventory data at 1530 GMT.
According to Bloomberg forecast the distillate inventory is expected to shrink by 1956k. Freezing weather has kept energy commodities in demand. S&P GSCI Index for Energy commodities gained by 4.67% in one month.
Production at OPEC and other countries is increasing that may lead to fall in oil prices in near time. Oil output at Libya is expected to increase on partial resume of supplying pipelines. Supply from Iraq and Iran is also likely to increase this year. Increase in production amid slow growth in global manufacturing activity (From China to U.S.) may not support higher prices.
At U.S. shale oil production has been increasing for last decade on hydraulic fracturing and horizontal drilling. U.S. might become the largest crude oil producer in next year said International Energy Agency in a report. Imports of crude oil has been falling after 2008 and the country is becoming self sufficient.
Crude oil may find support near to $96.10 and strong resistance near to $101.9. According to Bloomberg forecast the commodity is expected to fall at $94.3 in second quarter of the year.
At 0815 GMT WTI gained 0.65% at 100.65$. In other energy commodities Gasoline is at $276.44 up by 0.43%, Brent is up by 0.32% at $109.03 and Natural Gas gained 1.26% to $4.885.