BREAKING: Oil dips as DOE report shows inventory build

3:33 PM 4 May 2022

Eyes of oil traders are turned to Europe today as the European Union debates over the shape of the looming embargo on Russian oil. This is a major medium- and long-term factor for oil prices and is pushing crude prices higher today. Amid such high level talks it is easy to miss another factor for oil prices with more short-term implications on prices - weekly report from US Department of Energy on the level of oil and oil derivative inventories. Report completely missed estimates from API released yesterday in the evening.

  • Oil inventories: +1.30 mb vs -1.2 mb expected (API: -3.48 mb)

  • Gasoline inventories: -2.23 mb vs -0.2 mb (API: -4.50 mb)

  • Distillate inventories: -2.34 mb vs -1.1 mb (API: -4.46 mb)

A build in headline crude inventories put some pressure on oil prices with WTI pulling back below $106 area. Taking a look at WTI chart at H4 interval (OIL.WTI), we can see that price made a failed attempt of breaking above resistance zone marked with 38.2% retracement earlier today ($106.75). A long, upper wick of previous H4 candlestick painted in the resistance zone suggests that some kind of a reversal may be looming. If pullback deepens, a near-term support to watch can be found in the $103.50 area, where the short-term upward trendline and 200-period moving average are located.

Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits