Crude oil prices settled higher on Tuesday and continue to trade high on Wednesday morning as traders looked ahead to inventory data which is likely to confirm that crude output dropped last week. WTI crude oil is trading at 55.05, +1.20% as of 10:30 GMT.
OPEC Secretary General Mohammad Barkindo commented: “OPEC welcomes the clear guidance from the crown prince of Saudi Arabia on the need to achieve stable oil markets and sustain it beyond the first quarter of 2018.”
According to the American Petroleum Institute (API) on Tuesday – Crude stocks fell by 5.087 million barrels last week, while gasoline supplies dropped 7.697 million barrels and distillates declined 3.106 million barrels.
The Energy Information Administration (EIA) is due to release its official data later on today.
Technical View
Crude oil prices have broken above the resistance line which is extended to resistance dotted line at $55.30-$56. The momentum is bullish. Support holds at $53.75.
Once it breaks below, then the rally is expected to travel towards $52-$53 level. Alternatively, if it does not break, crude oil will continue its bullish trend.