WTI Crude Oil Daily Analysis – August 24, 2017

Crude oil futures trade slightly lower on Thursday morning after a higher closing on Wednesday as reports confirmed U.S. supplies fell for an eighth-straight week.

According to the EIA report – crude and gasoline stockpiles fell last week but gains were limited as U.S. supply remained at a two-year high of 9.528m barrels, up 26,000 bpd from last week. Inventories of U.S. crude fell around 3.3m barrels in the week ended Aug 18.

However, Gains were limited after the EIA’s reported that total domestic crude production rose 26,000 barrels per day (bpd) to 9.528m bpd last week.

Technical Outlook

Short Term View

Crude oil prices reacted according to the “Rising wedge pattern.” In the 1H intraday chart, prices are being supported at $47.50. Resistance holds at $49-50. A break below the support could lead towards $46.50-45 level.

Long-term View

The daily chart has formed a Megaphone chart pattern as prices failed to hold above resistance line at $50. Currently, prices trade nearby resistance line at $48.17.

The long term 200 moving average holds as resistance line at $49.64 and support is on the 50-day moving average at $46.66.