WTI oil price consolidates under new 2019 high at $66.58 (posted on Tuesday) as bulls started to reduce pace on reports that oil markets remain adequately supplied, despite sanctions on Iran and OPEC+ output reduction.
Surprise build of US crude stocks (API report on Tuesday showed rise of 6.9 mln bls vs 3 mln bls draw previous week) added to negative signals, along with overbought daily studies.
Consolidation was so far narrow as daily RSI / stochastic are still holding in overbought territory, with markets focusing on today’s release of EIA crude inventories report (1.2 mln bls build f/c vs 1.3 mln bls draw previous week) for fresh signals.
Overall structure remains bullish and suggests limited dips as positioning for fresh attempts higher, with rising 10SMA ($64.55) expected to contain and prevent deeper correction.
Res: 66.58, 67.24, 67.67, 68.73
Sup: 65.77, 65.57, 64.77, 64.32