WTI Crude Daily Update for February 22, 2017

Crude broke out of its six-week trading range, topping at $55.03, and closing above trend line resistance seen near $54.07.  Crude last hit these levels in early January but were unable to hold on to gains and reversed back to the $54.33 level during the latter of the U.S. trading session. High levels of OPEC/NOPEC compliance to agreed production cuts is cited as today’s market driver.  Resistance is now seen near the $55 handle, while support on crude oil is seen near the 10-day moving average at $53.61. Momentum remains neutral with the MACD printing near the zero index level.

OPEC Compliance Remain High

OPEC’s secretary general said in London, “All countries involved remain resolute in the determination to achieve a higher level of conformity.” Focus will shift back to U.S. inventory levels later in the week, when API and EIA stock data are released, and weekly rig count data are published.