US oil remains under strong pressure and posted marginally lower low at $44.37 9te lowest since early May) on Thursday, following sharp fall after data on Wednesday.
EIA report showed draw in crude inventories of 1.7 million barrels for the week ended June 2, which was well below forecasted draw of 2.7 million barrels.
Another hit came from unexpected build of gasoline inventories which rose by 2 million barrels, compared to forecasted draw of 0.45 million barrels.
Oil prices remain pressured by global oversupply, particularly in rising production of US shale oil and non-OPEC oil producers which offsets OPEC efforts to stabilize oil prices by extension of oil production cut.
Technical studies remain firmly bearish and see scope for final push towards key support at $43.74 (05 May low). Wednesday’s long bearish candle weighs heavily, however, oversold daily studies suggest the price may take a break before final push lower, but no firmer bullish signals seen so far. Falling 10SMA ($46.16) and Tenkan-sen ($46.38) mark strong resistances.
Res: 44.79, 45.19, 45.55, 46.16
Sup: 44.37, 44.00, 43.74, 43.56
