This morning, and during the North American trade hours, the price with the US WTI crude oil contract moved higher. This rise with crude prices, which includes the global benchmark WTI Brent, comes after the official EIA inventory data, for the United States was released.
The official EIA inventory data showed that US crude inventories showed a far larger outflow than expected. US stockpiles of the black gold lost 4.73 million barrels. This is compared with the 3.46 million drawdown that was expected by the financial markets. This was also a surprise gain that was foreshadowed within the API figures, released the day before, and for the same period.
Oil may now take a breather to consolidate its recent gains. The number of major event risks that can effect this market, for he week, has been exhausted. This leaves the price of oil with no catalyst for volatility. Investors in the oil market remain focused on global oversupply which means that any comments made by officials in key oil producing nations may cause kneejerk price movements.
Crude Oil Technical Analysis
Let’s look into today oil technical analysis. The price of the black gold has just breached the key resistance level lining up at $47.10 per barrel. The next upside barrier, in investor crosshairs, lines up at 48.65.
However, the July 4 swing high at $47.30 per barrel should hold. Therefore, the alternative technical analysis notes the first downside barrier lining up at the former resistance at 47.10. A break below this first downside barrier notes a key inflection point lining up at $45.31 per barrel.