WTI Oil was threading water during the past few sessions and holding within 100-pips range, with upside attempts being capped by 55SMA and 10 SMA holding the downside.
The oil price moved higher on Wednesday after previous day’s release of API report showed strong draw in gasoline inventories (5.5 million barrels) which offset unexpected build in crude inventories (1.6 million barrels vs forecasted draw of 3.5 million barrels).
However, rising output from OPEC producers continues to weigh and keep the upside limited.
Technical studies remain bullishly aligned and supportive for final push towards key near-term barrier at $47.30 (04 July high / base of widening daily cloud), break of which would generate strong bullish signal.
Meanwhile, oil price may remain in prolonged consolidation as daily slow stochastic reversed from overbought territory.
Dips should be ideally contained by 10SMA ($45.68) and rising 20SMA ($45.28) in extension, to keep bullish stance intact.
Focus in on today’s EIA weekly crude stocks report which shows forecast for a draw of 3.2 million barrels (well below previous week’s 7.5 million barrels draw) but release at / above forecasted level should keep oil prices supported.
Disappointing numbers in oil crude stocks today (release below forecasted level or build of inventories) may put oil prices under fresh pressure.
Res: 46.61, 46.90, 47.30, 48.23
Sup: 46.13, 45.80, 45.68, 45.28
