WTI rises above $62 post-EIA report, turns positive on the day

• Oil production in the U.S. continues to increase.
• Crude oil stocks decreased by 7.4 million barrels.

Crude oil prices gained traction in the first half of the NA session with the barrel of West Texas Intermediate rising above the $62 handle and turning positive on the day. As of writing, the barrel of WTI was up 0.65% at $62.05.

The report published by the Energy Information Administration today revealed that the crude oil production in the U.S. rose 0.3% on a weekly basis in the week ending December 29 while commercial crude oil inventories decreased by 7.4 million barrels, surpassing the market expectation of an inventory draw of  5.2 million barrels.

Earlier today, both the barrel of WTI and Brent reached their highest levels since May 2015 at $62.20 and $68.27 respectively. Although the oil production in Iran, OPEC's third-largest producer, has not been affected by the ongoing unrest in the country, the escalating geopolitical tension in the area continues to boost crude oil prices. Additionally, the unusually low temperatures in the U.S. ramps up the short-term demand for heating oil. "There is enough support for prices with the cold in the U.S. and the geopolitical factor," Olivier Jakob, oil analyst at Petromatrix, told Reuters on Thursday. 

Technical levels to consider

With a decisive break above $62.60 (May 6, 2015, high), the barrel of WTI could extend its gains toward $63.40 (Dec. 10, 2014, high) and $64 (psychological level). On the downside, supports align at $60 (psychological level), $59.49 (Dec. 28, 2017, low) and $58.30 (Dec. 26, 2017, low).