Crude oil Edges Lower Following Gasoline Rout

Crude oil priced held their ground despite a downdraft in gasoline prices that occurred after a report from the Department of Energy. According to the EIA U.S. commercial crude oil inventories decreased by 5.5 million barrels from the previous week. Analyst had expected a decline of 2 million barrels. U.S. crude oil inventories remain near levels not seen for this time of year in the last 80 years. Gasoline inventories increased by 1.7 million barrels last week, more than the 0.5 million barrel increase expected. Distillate fuel inventories increased by 1.4 million barrels last week and are also in the middle of the average range for this time of year.

Resistance on crude oil is seen near the 10-day moving average at $41.11, while support is the recent low at $38.22.  Momentum remains negative with the MACD printing in the red with a downward sloping trajectory.  The RSI remains in oversold territory printing a reading of 24, below the oversold trigger level of 30.