WTI Crude Daily Update for August 24, 2016

WTI crude oil surged back up to 48.31 highs, after basing at 46.62 earlier, as reports of Iran coming around to the idea of a production freeze circulate. Reuters reports from sources that Iran has not decided if it will support a freeze, though says it is more open to reaching an “understanding” with other producers.  Brent moved higher in tandem with WTI.

Support is seen near the 10-day moving average near 46.17, while resistance is seen near the August highs at 49.36.  Mixed API inventory numbers should generate volatility. According to the American Petroleum Institute, crude oil recorded a large build of 4.5mn barrels compared with expectations of a draw of around 0.5mn.  There was a substantial draw in gasoline stocks of 2.1mn, significantly bigger than expected, while distillates recorded a draw of 0.8mn barrels on the week.