Technical Analysis Crude Oil for 8/6/15

Crude oil prices moved lower after testing restisance levels following a stronger than expected draw in crude oil inventories.  Following the Energy Information Adminstrations report, crude oil prices moved higher but ran into strong selling near Wednesday’s highs at $46.70.  Prices then moved lower piercing through $45.  The technicals continue to look ugly with the exception of the oversold condition reflected by a RSI print of 26.

According to the Department of Energy, U.S. commercial crude oil inventories dropped by 4.4 million barrels from the previous week. Gasoline inventories increased by 0.8 million barrels last week, and are in the middle of the average range. Distillate fuel inventories increased by 0.7 million barrels last week and are in the middle of the average range for this time of year. It appears diesel stocks are continuing to rise.As for demand, total product demand over the last four-week period averaged over 20.3 million barrels per day, up by 3.6% from the same period last year.