WTI stays on the way to $93.00 on Russian invasion woes, ignores API stockpile

WTI takes the bids to refresh intraday high, up for the second consecutive day.

Kyiv declares state of emergency, rumors of Russian military action around 04:00 AM local time are loud as well.

API weekly inventories rose beyond -1.076M previous reading.

Weekly EIA stockpiles report, US Q4 GDP will decorate calendar, risk catalysts will be more important.

The black gold gained upside momentum as Ukraine declared a 30-day state of emergency due to looming fears of a Russian invasion. The policymakers highlight Moscows marching troops near the border and recent cyber-attacks on their banks, government networks and financial institutions while taking such decision.

Recently, Ukraine President Volodymyr Oleksandrovych Zelenskyy mentioned around 200K Russian troops near the border while also saying, “Today, (Russian President Vladimir) Putin did not respond to a request for a phone call.” Also portraying the fears of imminent war between Russia and Ukraine are the rumors that Moscow will begin military actions at 04:00 AM local time.

Elsewhere, weekly industry inventory data from the American Petroleum Institute (API) came in softer but were largely ignored. That said, the latest stockpile report marked 5.983M addition to the inventories for the week ended on February 18, versus -1.076M prior.

Its worth noting that recently upbeat comments from San Fransisco Fed President Mary Daly also challenge the oil buyers. The policymaker cited 'more urgency' on rate hikes in her latest speech.

Amid these plays, S&P 500 Futures and US Treasury yields both remain pressured by the press time.

Moving on, geopolitical headlines will be crucial for the oil traders to watch while US Q4 GDP and weekly official oil inventories from the US Energy Information Administration (EIA), expected 0.767M versus 1.121M prior, will decorate the calendar.

Technical analysis

An upward sloping trend line from July 2021, around $94.75 at the latest, seems to restrict immediate advances of WTI crude oil prices. However, bears may not take entries until the quote stays beyond the 21-DMA level of $89.82.