WTI oil moved slightly lower in Wednesday’s mid-European session trading but remains constructive following strong rally on Tuesday.
Oil prices are supported by strong concerns about oil production in Venezuela and were additionally boosted by fall in US crude inventories.
API report, released late Tuesday showed stronger than expected fall in crude inventories (3.16 million barrels vs forecasted draw for 3 million barrels.
Daily chart shows oil price entrenched within narrowing range between 100SMA ($67.58) and 55SMA ($69.26) which extends into seventh straight day and maintaining directionless mode. Daily techs remain mixed as positive signals from bullish stochastic and improving momentum are offset by negative configuration of MA’s.
Oil price looks for stronger catalyst which would establish near-term action in fresh direction.
Moving averages off 100 and 55 days act as initial pivots and break of either side would generate fresh direction signals.
EIA crude oil stocks report is due later today and will be closely watched for fresh signals. Draw of 2.33 million barrels is forecasted for the week behind vs previous week’s result which showed a build of 5.83 million barrels.
Stronger fall in oil inventories would offer fresh support to oil prices, while disappointing results would turn near-term bias negative.
Res: 69.03, 69.26, 70.00, 70.16
Sup: 68.45, 68.04, 67.57, 67.02
