WTI Crude Oil Daily Analysis – July 26, 2017

Crude oil prices extend gains on Wednesday morning amid the recent news on global production cuts.

According to the American Petroleum Institute data – The refineries pushed production by 10.23 Million barrels whereas only 3 Million barrels were expected to drop at the most. This would create a huge impact and set the rally ahead of today’s EIA inventory data.

Crude oil has been boosted up since the Saudi Arabia’s announcement regarding the production cut at a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers on Monday.

Technical Outlook

WTI Crude Oil prices reacted to “Broadening top pattern”. A new high was set at $48.40, which might enter a consolidation around this area.

“Ascending Broadening wedge” has replaced the Broadening top pattern. Prices reach higher highs to create a raising trend line which forms the upper boundary of the pattern.

Support will be the inner dotted line at $47.89. A break below and prices could reach to $46.35.