Crude oil prices gained 1.25% by Wednesday’s close. The gains came after the US Energy Information Administration (EIA) reported a buildup of 5.4 million barrels against forecasts of an unchanged print. The buildup in inventory follows a draw of 4 million barrels in the week before.
Crude Oil Inches Closer to the Resistance Level
The rebound in oil prices has pushed price action close to the resistance level. A retest of the 62.85 resistance level could potentially seal the upside in oil prices. However, in case price breaks past this level, we expect to see further gains. The next main upside target is towards the 64.65 level. To the downside, the declines could stall at the support level of 60.33.
