WTI Crude Daily Update for January 20, 2017

Crude oil prices moved higher but barely held on to gains following a larger than expected build in crude oil inventories reported on Thursday by the Department of Energy.  Prices surged higher initially, but generated an inside day with a lower high and a higher low.  Support is seen near the 50-day moving average at 50.78.  Momentum remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.

The Department of Energy reported that U.S. commercial crude oil inventories increased by 2.3 million barrels from the previous week. This compares to expectations of no change.  Total gasoline inventories increased by 6.0 million barrels last week, and compares to expectations of a 2-million-barrel increase. Distillate fuel inventories decreased by 1.0 million barrels last week which compares to expectations of a 1-million-barrel build.