27 Apr 2016
Oil settles at fresh 2016 high
US crude oil settled at a fresh 2016 high on news that output slipped to 8.94 million barrels a day, the lower since October 2014. WTI futures surged to $45.59 a barrel on Wednesday, to finally settled around $45.30/bbl.
Late Tuesday, the American Petroleum Institute reported an inventory draw of 1.1M barrels in the past week, pushing crude higher at the beginning of the day. The EIA report, on the contrary, reported an increase of almost 2M for the week ended April 22nd, but beyond the headline and the initial downward reaction, market cheered the decrease in production and sent the price back higher.
Oil technical perspective
“Technically, the daily chart shows that the Momentum indicator has recovered its upward slope within bullish territory, whilst the RSI indicator aims higher around 66 and the price advances further above its moving averages, all of which supports further gains ahead," said Valeria Bednarik, chief analyst at FXStreet. "In the 4 hours chart, the intraday decline met buying interest around a bullish 20 SMA, currently around 43.75, while the technical indicators hold within positive territory, with no clear directional strength."
Support levels: 44.60 43.75 43.20. Resistance levels: 45.80 46.40 47.10.
Late Tuesday, the American Petroleum Institute reported an inventory draw of 1.1M barrels in the past week, pushing crude higher at the beginning of the day. The EIA report, on the contrary, reported an increase of almost 2M for the week ended April 22nd, but beyond the headline and the initial downward reaction, market cheered the decrease in production and sent the price back higher.
Oil technical perspective
“Technically, the daily chart shows that the Momentum indicator has recovered its upward slope within bullish territory, whilst the RSI indicator aims higher around 66 and the price advances further above its moving averages, all of which supports further gains ahead," said Valeria Bednarik, chief analyst at FXStreet. "In the 4 hours chart, the intraday decline met buying interest around a bullish 20 SMA, currently around 43.75, while the technical indicators hold within positive territory, with no clear directional strength."
Support levels: 44.60 43.75 43.20. Resistance levels: 45.80 46.40 47.10.