Crude oil prices have picked up steam in the last few minutes after a change in US oil stocks by -1.7 million barrels in the week ended 21 May. This is according to the weekly report from the US Energy Information Administration (EIA). The prediction from analysts had been for a drop of -1.0million barrels. This figure is also a drawdown from the previous week’s 1.3 million barrel buildup.
The shortfall was due to increased utilization by US refineries, which used up to 123,000 barrels per day more than the previous week’s average. Imports were also down by 138,000 barrels per day from the last week.
Crude oil price on the Brent benchmark is flat at 68.50, recovering from intraday lows at 68.04 as of writing.
Technical Outlook for Brent Crude
With today’s bounce, crude oil price on the Brent benchmark stays within the channel and above the 67.74 support line. Bulls need some follow-through buying to send the price towards the 70.01 resistance. However, a break of that area sends the price towards the 2021 high at 71.44. 73.34 waits in the wings as a new 2021 high if the price can override the existing high at 71.44.
On the other hand, a breakdown of the channel and the 67.74 support allows the bears to aim for 66.81, with 65.95 and 64.26 lining up as additional downside targets. 62.21 and 60.07 are potential support targets further down and come into the picture if there is an extensive decline.