It was sell the rumor buy the fact which helped lift crude oil prices after a larger than expected build in crude oil inventories reported on Wednesday by the Department of Energy. The catalyst actually was an unexpected draw in Cushing Oklahoma inventories which surprised the markets. Crude surged 2.6%. Resistance is seen near the 10-day moving average at52.98, while support is seen near the 20-day moving average near 49.
The Energy Information Administration reported that U.S. commercial crude oil inventories increased by 4.1 million barrels from the previous week, which was more than expected. Gasoline inventories increased by 5.0 million barrels last week, while distillate fuel inventories increased by 8.4 million barrels last week and are above the upper limit of the average range for this time of year. Total commercial petroleum inventories increased by 13.4 million barrels last week.