Oil prices extended the near term rebound this week as winter storm hit the US. Heating demand would be boosted by the arctic blast, offsetting the curbed travel plans. Also, as reported yesterday, US oil inventories unexpected dropped -5.9m barrels in the week ending December 16.
WTI is extending the rebound from 70.34 short term bottom and hit as high as 78.95 so far. While further rise cannot be ruled out, it’s too early to confirm the end of the medium term down trend, not to mention a reversal. There level layers of resistance ahead at 55 day EMA (now at 82.03), 83.82 resistance and then trend line resistance at 85.07.
Another decline will remain in favor for now, at a later stage. Break of 73.52 minor support will likely send WTI through 70.34 low.
