WTI oil price consolidates within narrow range above thin daily cloud on Thursday, after strong rally previous day, which eventually broke and closed above pivotal barriers at $68.60/92 zone (Fibo 38.2% of $75.34/$64.43 descend, 100/55SMA’s).
EIA report released on Wednesday showed much bigger than expected fall in crude inventories past week (-2.26 million barrels vs -0.68 million barrels f/c) which added to negative API report on Tuesday and boosted oil prices.
Concerns about shortage in global supply, due to sanctions on Iran and situation in Venezuela are also supportive factors for oil prices.
Meanwhile, overbought slow stochastic and fading bullish momentum suggest bulls may take a breather and consolidate before probes through psychological $70 barrier and extension towards target at $71.17 (Fibo 61.8% of $75.34/$64.43).
Broken barriers now offer good supports at $68.97/$68.60 zone, where extended dips are expected to find ground.
Res: 70.00, 70.42, 71.17, 71.64
Sup: 69.54, 68.97, 68.60, 68.20
