US commercial crude oil inventories rose 15.2 million barrels in the week ending April 3, much higher than expectation of 9.8 million barrels. At 484.4 million barrels, inventories are about 2% above the five year average for this time of year.
WTI crude oil recovered to 30.65 last week but turned sideway since then. Traders are holding their bets await OPEC++ meeting on production cut. Technically, price actions from 20.40 are seen as a corrective move. Stronger rebound could be seen to 38.2% retracement of 65.38 to 20.40 at 37.58. We’d expect strong resistance from there to limit upside, at least on first attempt. However, sustained break of 4 hour 55 EMA (now at 26.8) will suggest that the corrective recovery is finished and bring retest of 20.40 low.
