Crude Oil Settles Above $45.00 After Inventory Draw
Crude oil is trading lower today after a big two-day rally which was capped by a draw in U.S. inventories. Oil is still seeing support from hopes of an imminent vaccine for the coronavirus.
U.S. inventory figures from the EIA showed a drop of 754k barrels last week. Analysts had expected a 127k rise so this was another bullish report for crude. Stocks at the Cushing delivery port also fell by 1.7 million barrels. There was still a slight headwind with gasoline demand off by 128k barrels per day but traders are looking ahead to a vaccine and lockdown end.
Next week sees a crunch OPEC meeting and this will determine whether oil can hit the $50 price level in the weeks ahead. Traders are hopeful that ministers will agree to extend production levels into 2021 after their plans for a January supply increase have been scuppered by the second wave of virus cases.
Crude Oil Technical Outlook
Crude oil has pulled back from the two-day rally above $43.50, which was the August high. This level is now support for a push towards the $50.00 level. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.