Crude Oil Price Analysis for March 23, 2017

Crude oil prices tumbled to a 4-month low at 47.01, but rebounded despite a larger than expected build in crude oil inventories.  WTI Prices closed nearly unchanged rebounding sharply after slicing through trend line support near 47.60.  Resistance on crude oil is seen near the 10-day moving average at 48.94.  Momentum is negative as the RSI (relative strength index) moved lower along with price action, but the current print of 27.8 is below the oversold trigger level of 30 and could foreshadow a correction. Momentum as reflected by the MACD (moving average convergence divergence) index is also negative as the index is print in the red with a downward sloping trajectory.

Crude Oil Inventories Climbed More than Expected

The Energy Information Administration also reported that crude oil inventories increased by 5.0 million barrels from the previous week. Expectations were for a more moderate 2.5-million-barrel climb. Gasoline inventories decreased by 2.8 million barrels last week, while distillate fuel inventories declined by 1.9 million barrels last week.