WTI jumps above $63 after API report in post-settlement trade

• WTI gains more than $1.5 on Wednesday.
• API reports 11.2 million barrel draw in U.S. crude stocks.

Crude oil prices gained traction in the late NA session with the barrel of West Texas Intermediate refreshing its highest level since December 2014 above $63. As of writing, the barrel of WTI was trading at $63.40, adding 2.7% on the day.

In its weekly report, the American Petroleum Institute announced that crude oil inventories decreased by 11.2 million barrels in the week ending January 5 to 416.6 million, surpassing the markets' expectation of a decrease of 3.9 million barrels. Highlighting the details of the report, "refinery crude runs rose by 211,000 barrels per day, API data showed. Gasoline stocks rose by 4.3 million barrels, compared with analysts' expectations in a Reuters poll for a 2.6 million-barrel gain," Reuters wrote.

With the API data out of the way, investors will be waiting for the Energy Information Administration's weekly stock report to see the change in inventory and output levels in the United States. Although another draw in crude stocks wouldn't be a big surprise as the demand for heating oil remains high amid extremely cold weather conditions in the U.S., investors may see that as an opportunity to add to their long positions.

Technical levels to consider

The barrel of WTI could face the initial hurdle at $65 (psychological level) ahead of $65.60 (Dec. 8 high) and $66.70 (Dec. 5 high). On the downside, supports could be seen at $61.80 (daily low), $61 (Jan. 5 low) and $60 (psychological level).