FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
19,802,386Confirmed
729,564Deaths
12,720,187Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
EIA Crude Oil Report

U.S. West Texas Intermediate crude oil futures are trading marginally lower at the mid-session on Thursday following the release of government report that showed a surprise increase in U.S. crude stocks, which offset hopes for a demand recovery as coronavirus lockdowns ease.

According to the U.S. Energy Information Administration (EIA), U.S. stockpiles rose by 7.9 million barrels the week-ending May 22. Analysts had been expecting a draw of 2.5 million barrels although analysts at FactSet were predicting a 1.3 million barrel draw.

At 14:40 GMT, July WTI crude oil is trading $32.73, down $0.08 or -0.24%.

The market is actually clawing back earlier losses that pushed prices into an intraday low of $31.14. This move was fueled by a surprise build in Wednesday afternoon’s American Petroleum Institute (API) weekly inventories report.

Also weighing on prices was uncertainty about Russia’s commitment to continuing deep output cuts ahead of a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through the main tops at $34.81 and $351.8 will change the main trend to up.

The minor trend is up. This is controlling the momentum. A trade through $30.72 will change the minor trend to down. This will shift momentum to the downside.

The main range is $54.86 to $17.27. Its retracement zone at $36.07 to $40.50 is the primary upside target and potential resistance zone.

The minor range is $30.72 to $34.81. Its 50% level at $32.77 should act like a pivot. It is providing resistance early Thursday.

The short-term range is $17.27 to $34.81. If the momentum shifts to the downside then its retracement zone at $26.04 to $23.97 will become the primary downside target area.

Advertisement

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $32.73, the direction of the July WTI futures contract the rest of the session on Thursday is likely to be determined by trader reaction to $32.77.

Bearish Scenario

A sustained move under $32.77 will indicate the presence of sellers. If this move creates enough downside momentum then look for a test of the minor bottom at $30.72. This is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over $32.77 will signal the presence of buyers. This could lead to a quick test of $32.98, followed by $34.81.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk