Crude oil prices are trading sideways ahead of data from the US government on oil inventories. Late on Tuesday, the American Petroleum Institute (API) indicated that the amount of crude oil in storage had reduced by 1 million barrels in the past week.
This came as a surprise considering the previous week’s increase of 12.792 million barrels. The figure, which marks the first draw since mid-February, also beat the forecasted rise by 2.715 million barrels. Investors are now awaiting confirmation of the trend from the EIA later in the day.
Furthermore, the IEA monthly report that is set for release today will give direction to crude oil prices. Investors are keen on the agency’s outlook on the commodity’s demand and supply. This is in light of economies recovery and progress in vaccine rollouts.
The Fed decision scheduled for later today will further avail direction to crude oil prices by highlighting the health of the US economy.
Crude oil prices technical outlook
Crude oil prices have been within a trading range for three consecutive sessions. During this period, the price movement has been alongside the 20 and 50-day exponential moving averages. At this point, the prices can go either way.
Currently, the WTI futures are up by 0.58% at $65.19. depending on the outcome of the awaited events, the bulls are likely to test the prior resistance level of $66.44. It manages to hit that level, the next target will be $67.97. This is the highest price level of the US oil benchmark since October 2018.
On the flip side, the prices will be testing the lower levels of $63.76 and further down at $63.12.
WTI Chart
