WTI crude oil price is little changed despite the US EIA weekly crude oil inventories showing a massive build. As of this writing, the commodity is trading well above today’s low of 23.55 at 24.15.
According to the Energy Information Administration (EIA), there were 15.2 million barrels of oil held in commercial storage last week. This topped the forecast at 9.8 million and last week’s report at 13.8 million barrels.
Oftentimes, a higher-than-expected crude oil inventories build is bearish for the commodity because it suggests that near-term demand will be lower. However, it would seem that crude oil price is holding steady as market participants await the meeting between Saudi Arabia and Russia tomorrow.
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WTI Crude Oil Price Outlook
On the hourly time frame, it can be seen that WTI crude oil price has recently been making lower highs after a series of higher highs. Consequently, a head and shoulders pattern has formed. This chart pattern is considered as a bearish reversal indicator. And so, a break of the neckline support at 23.57 could mean that the commodity is headed lower. Near-term support is at 22.40 where the rising trend line is (from connecting the lows of March 30 and April 1). Reversal candles at this price level could mean that the uptrend on crude oil price is still intact. Alternatively, a break of the trend line could mean a potential sell-off to the lows of April 1 at 19.75.
On the other hand, if there are enough buyers in the market, we could see crude oil price continue trading higher. A break of today’s highs at 25.08 could mean that the commodity is head to its April 6 highs at 28.86.
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