WTI crude oil prices moved lower on Wednesday following mixed reports on inventories. Prices are poised to test support near the 50-day moving average at
WTI crude oil prices moved lower on Wednesday following mixed reports on inventories. Prices are poised to test support near the 50-day moving average at 48.31. Resistance is seen near the 20-day moving average at 50.35. Momentum has turned lower as the MACD (moving average convergence divergence) index recently generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.
On the inventory front, U.S. commercial crude oil inventories decreased by 0.6 million barrels from the previous week, which compared to expectations of a 1-million-barrel build. The API reported a 5.2 million build. Gasoline inventories decreased by 2.0 million barrels last week, compared to a build reported by the API and a build expected by analysts. Distillate fuel inventories decreased by 3.4 million barrels last week but remain at the upper end of the 5-year average range for this time of year.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.