WTI oil eases in early trading on Thursday, following report about new record high in US oil production, which soured the sentiment.
EIA report showed stronger than expected draw in US weekly crude inventories (-2.6 mln bls vs 1.3 mln bls f/c) but positive impact was offset by much stronger rise in distillate and gasoline stocks (distillate 2.9 mln bls build vs 1.5 mln bls f/c, gasoline 7.5 mln bls build vs 2.7 mln bls f/c). Oil price continues to trade in extended directionless mode, shaped in triangular consolidation of recovery leg from $42.36 low.
The upside remains capped by falling 55SMA (currently at $52.55), with falling thick daily cloud continuing to heavily weigh.
On the other side, strong bullish momentum and daily 10/20/30SMA’s in bullish setup continue to underpin.
Initial signals could be expected on violation of 10 SMA ($50.97) or 55SMA ($52.55).
Bearish scenario would require extension below 30SMA ($49.25) and confirmation on close below 20SMA ($48.35). Conversely, sustained break above 55SMA would signal attack at daily cloud base ($54.16), violation of which would be bullish signal.
Res: 52.55, 53.29, 54.16, 55.55
Sup: 51.25, 50.97, 50.00, 49.25
