Summary:
-
DOE crude oil inventories: -2.6M vs -0.7M exp
-
Production remains unchanged at 11.0 mbpd
-
Oil adds to earlier gains and looks to break higher
The latest weekly crude inventory figures from the US have produced their usual high level of volatility in the Oil price in the immediate aftermath, but as the dust settles the market seems to be looking to move higher with both OIL and Oil.WTI sitting on decent gains for the day. The headline reading of -2.6M below the -0.7M consensus forecast, and also lower than the 0.0M seen in last night’s API release.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appWhile it is not as far negative as last week’s -5.8M it does represent a larger than expected drop and also means that 3 of the past 4 releases have been sub-zero. The report itself was pretty positive for price on the whole with the following showing components in the form of actual vs expected unless otherwise stated:
-
Gasoline: -1.6M vs 0
-
Distillates: -0.8M vs +1.7M
-
Production unchanged at 11.0 mbpd
The first move in the market was higher as one would expect, given the draw but it has been a bit choppy since. The Oil.WTI price spiked to 69.50 in the minutes that followed but since the H1 candle following the release actually closed red. However, the current candle is showing gains once more and if price can break 69.50 and make it stick then there’s quite a bit of scope for further gains.
Oil.WTI spiked higher on the DOE release but by the time the H1 candle closed it was in the red. Price looks to remain pretty well supported and a break above 69.50 would negate the bearish H1 candle and could lead to a larger breakout. Source: xStation
Oil.WTI is close to its highest level in a month after the release and the market could be setting up an inverse head and shoulders formation. The neckline in this could be seen to be around 69.50 which, if broken and it plays out in a textbook fashion would target a symmetrical move to 75.00. A rally of 550 ticks. Source: xStation
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.