Crude oil prices trade higher today close to three-month highs recovering some of yesterday’s losses after the U.S. crude stockpiles increased unexpectedly last week, while the gasoline and distillate inventories rose sharply.
Crude oil inventories increased by 822K bpd above the forecasts of a 2.8 mbpd drop. Oil stocks at Cushing, delivery hub for WTI crude oil dropped 3.4mbpd previous week, that was the biggest drop since Feb 2018. USA gasoline inventories jumped 5.4Mbpd and distillates rose 4.1mbpd, both betaing the analysts’ expectations.
The Crude oil price adds 0.17% at $58.86 as the correction from the three-month high continues. The crude oil outlook is positive for the short term as the crude oil price hovers above all major daily moving averages and holds inside the upward channel that started in October capitalizing the speculation for further cuts from OPEC.
On the upside, oil prices immediate resistance stands at $58.97 the daily high. If the oil price break above that intraday resistance level, the next hurdle will be met at 59.80 the high from December 6th. If bulls clear that level then we might have another leg higher for the $60.00 psychological mark.
On the downside, immediate resistance for crude oil price stands at $58.78 today’s low, while the next barrier to the downside will be met at $57.59 the 200-day moving. A settlement of the crude oil price below the $57.59 support might result in a deeper move down to $56.00 where the 50 and 100-day moving averages cross.More content