WTI oil gains some ground after the release of the EIA weekly report.
Natural gas is testing new lows due to disappointing weather forecasts. Natural gas bulls cannot find any positive catalysts, and natural gas prices continue to move lower. Interestingly, RSI remains in the moderate territory, so there is enough room to gain additional downside momentum.
WTI oil settled near the $80.50 level as traders reacted to the EIA data. Crude inventories increased by 0.5 million barrels, compared to analyst consensus, which called for an increase of 1 million barrels. Total motor gasoline inventories grew by 1.8 million barrels, while distillate fuel inventories declined by 0.5 million barrels. Domestic oil production remained unchanged at 12.2 million bpd. The report did not put additional pressure on WTI oil, and it looks that traders may soon focus on rising demand from China.
Brent oil is mostly flat in today’s trading session. While yesterday’s pullback was not continued, Brent oil will likely need material catalysts to get to the test of the recent highs.
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Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.