Technical Analysis Crude Oil for 8/13/15

Crude oil prices fell back to $43.35 from near $43.60 following the EIA inventory data which showed a 1.7 million barrel fall in crude stocks. The street had been expecting a 2.0 million barrel decrease. Meanwhile, gasoline supplies, seen down 1.0 million barrels actually fell 1.25 million barrels, while distillate stocks were up 3.0 million barrels, versus expectations for a 1.0 million barrel rise. Refinery usage was unchanged at 96.1%. Crude prices tested $42.80, though a failure to break the $44 mark near term is expected to see the market test Tuesday’s trend low of $42.70.

Target support is seen near the March 2015 lows at $42.03.  Momentum remains negative with the MACD printing in the red with a downward sloping trajectory.