WTI crude oil caught a bid after the weekly report from the American petroleum institute on Tuesday saw a draw in oil inventories. According to the API data, US crude oil inventory fell 3.09 million barrels for the week ending April 12 th . This was in contrast to expectations of a 1.71 million build-up in inventory. Oil traders wait for the official data from EIA today.
Can Crude Maintain the Momentum to the Upside?
Oil prices rebounded sharply on the day as it reclaimed the previous highs near 64.55. However, with the bearish divergence, there is scope for price to erase the gains once again. But despite this, there is a risk of oil prices inching higher to test the 65 – 66 level where resistance is most likely to form. In the short term, we expect oil prices to trade flat within 64.55 and 63.20 corridor.
