WTI crude oil prices broke past the sideways range established over the past two days. WTI crude oil closed at $58.72 on Tuesday. The gains came after the weekly inventory report from the American Petroleum Institute (API) showed a larger than anticipated drawdown in stockpiles. API’s weekly inventory saw crude oil stockpiles reporting a drawdown of 7.55 million barrels for the week ending June 20th. This was well above the median estimates of 2.89 million barrels in drawdown.
Will Crude Oil Prices Rise Further?
The current bullish breakout after the Doji candlesticks since the past two days indicate further gains. With price clearing the resistance area of 57.50, further gains are expected. The next main upside resistance is seen at the 61.00 level. We, therefore, expect oil prices to continue to rise to this level in the near term. To the downside, the bias shifts if oil prices fall back below 57.50. This will open the way for a retest to the 54.00 level of support
