WTI rises above $64 post-API in post-settlement trade

Crude oil prices extended daily gains in the post-settlement trade with the barrel of West Texas Intermediate rising above the $64 mark. As of writing, the barrel of WTI was trading at $64.05, adding 0.5% on the day.

Following the rally that extended to a fresh three-year high at $64.90 on Monday, the WTI made a technical correction on Tuesday and dropped below the $64 mark. However, the bearish pressure faded away with no fundamental developments strengthening it on Wednesday and the weekly API report provided an additional boost to lift the WTI back above $64.

Crude oil inventories in the U.S. decreased by 5.1 million barrels to 411.5 million in the week ending January 12 according to the weekly report released by the American Petroleum Institute. Further details of the report showed that refinery crude runs fell by 420,000 barrels per day while gasoline stocks rose by 1.8 million barrels.

On Thursday, the EIA is going to publish its weekly report, which is expected to show a decrease of 3.6 million barrels in crude oil inventory in the U.S. A larger-than-expected draw is likely to help the WTI challenge the critical $65 handle.