WTI crude oil clings to mild gains below $70.00 as EIA inventories jostle with firmer US Dollar

• WTI remains mildly bid while defending the previous day’s bounce off two-week low.
• EIA Crude Oil Stocks Change reported huge draw of 9.603M for the latest week.
• Cautious optimism in the market, absence of any fresh threats from central bankers also underpins energy prices.
• US-China news, central bankers and second-tier US data eyed for clear directions.

WTI crude oil buyers keep the reins for the second consecutive day after refreshing the weekly low as market sentiment appears slightly positive and helps the energy benchmark to ignore threats from a firmer US Dollar. That said, the black gold rises 0.33% intraday to $69.45 by the press time of early Thursday.

Apart from the risk-on mood, portrayed by the minor gains of the S&P500 Futures, the price-positive inventory data from the US Energy Information Administration (EIA) also favor the WTI bulls.

EIA Crude Oil Stocks Change dropped -9.603 million barrels (M) for the week ended on June 23 versus -1.757M market forecasts and -3.831M previous readings.

It’s worth noting that the depleting conditions of the US Strategic Petroleum Reserves (SPR) join geopolitical fears emanating from Russia and hopes of the US-China ties, on US Treasury Secretary Janet Yellen’s comments, also strengthen the WTI crude oil prices.

Elsewhere, the US Dollar Index (DXY) marches to 103.10, up 0.10% on a day, as it cheers Fed Chair Jerome Powell’s hawkish bias. That said, the US central banker reiterated his support for two more rate hikes in 2023 while speaking at the European Central Bank (ECB) Forum on central banking the previous day.

Moving on, Federal Reserve Chairman Jerome Powell’s speech in Madrid will be important for the Oil traders to watch. Also crucial will be the revised version of the US Gross Domestic Product (GDP) for the first quarter (Q1) 2023 and second-tier employment data.

Technical analysis

Despite the clear bounce off a one-month-old rising support line, around $67.50 at the latest, WTI bulls need validation from the 21-DMA, close to $70.40 by the press time, for conviction.