Crude Oil Price: Will EIA’s Inventory Data Ease Demand Concerns?

Crude oil price continues to find support at $75 as investors await the weekly US oil inventory data from the Energy Information Administration (EIA). In the previous release, crude oil stockpiles had dropped by 6.866 million barrels. In this week’s release, analysts expect a reading of -4.359 million barrels. As for gasoline inventory, the forecasted draw of 1.786 million barrels is lesser than the prior week’s 6.076 million barrels.  

However, crude oil price is under pressure following the report on a decline in Chinese oil imports. In the initial half of 2021, the imports dropped by 3% compared to the previous year. Notably, it is the first drop in 8 years. The report details have cast concerns over demand in the leading oil consumer in the world.  

WTI oil technical outlook

Crude oil price remains above 75 ahead of the US inventory data from EIA. At the time of writing, it was down by 0.24% at 75.00. Earlier on, WTI futures had dropped to an intraday low of 74.07 amid the ongoing uncertainties in the market. On a two-hour chart, it is trading slightly above the 25 and 50-day exponential moving averages.

As a reaction to the stockpile data, the bulls may gather enough momentum to push crude oil price past the current resistance level at 75.45. If that happens, the next target will be at last week’s high of 76.19 or higher at the psychological level of 77. On the flip side, a move below the support level at 74.55 will have the bears eyeing 74 or lower at 73.

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Oil price chart

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