WTI oil is holding around $72 per barrel in European morning trading and keeps overall positive near-term tone, underpinned by surprise draw in US inventories and political crisis over missing Saudi journalist.
Oil price holds in recovery phase off 0.7049 (11 Oct low) supported by supply concerns over possible reaction of Saudi Arabia on accusations over missing journalist as oil supply could be used as a weapon in retaliation to growing critics.
API report released on Tuesday showed surprise draw in oil inventories (2.1 million barrels vs previous week’s build of 9.75 million barrels), with focus turning to EIA reports, due later today, which shows forecast for 2.16 million barrels build vs previous week’s 5.98 million barrels build.
Another surprise today would further boost oil prices for recovery extension towards pivotal barriers at $72.85/93 (converged 10/20SMA’s / Fibo 38.2% of $76.88/$70.49 bear-leg).
Mixed daily techs lack clearer direction signals, with focus turning towards economic indicators and news, which could act as catalysts.
Bullish scenario includes sustained break above $72.85/93 pivots to spark recovery extension towards Fibo barriers at $73.69 and $74.44 (50% and 61.8% retracement of $76.88/$70.49 respectively).
Rising 30SMA tracks recovery and marks support at $71.61, with close below to weaken near-term structure and make the downside more vulnerable.
Res: 72.42, 72.93, 73.69, 74.44
Sup: 71.61, 71.01, 70.49, 70.00
