Crude Oil Inventory Report Drives Prices Higher

Crude oil prices made new 5-month high at 46.62, with gains driven by overall dollar weakness, and declining U.S. production. Strong imports have boosted U.S. crude inventories to record levels, though domestic production has fallen off nearly 700k bpd from its 2014 peak. Gasoline demand in the U.S., China and Asia remains robust, which could keep a bid under crude for the time being.

Resistance on crude oil prices are seen near the November 2, highs at 48.36, while support is seen near the 10-day moving average at 43.84.  It appears that the RSI (relative strength index) has hit resistance which could stifle upward momentum in prices.  The current print is slightly below the overbought trigger level of 70 in the upper end of the neutral range.