WTI Crude Oil Daily Analysis – November 16, 2017

Crude oil prices settled lower on Wednesday and trade unchanged on Thursday morning on EIA report that revealed a higher than expected oil supply. The data showed that crude and gasoline supplies rose last week and the production hit an all-time high.

Inventories of U.S. crude rose by roughly 1.9 million barrels for the week ended Nov. 11, missing expectations of a draw of 2.2 barrels.

Gasoline inventories rose by 894,000 barrels, confounding expectations for a draw of 919,000 barrels while supplies of distillate fell by about 799,000 barrels, less than the expected decline of 1.3 million barrels.

According to the EIA – The preliminary U.S. production figures showed weekly output rose by 25,000 to an all-time high of 9.65 million barrels per day.

Technical View

WTI Crude Oil daily chart has formed a “Rising wedge” pattern. As per the pattern analysis; the market has clearly given corrections that retested the medium support of the channel.

The same is expected to happen in the upcoming session as the market is likely to fall a little bearish to retest the channels support level near $54.8. Alternatively, if the retest fails then the market might fall further on a bearish momentum, might break the channel itself and the rally might extend towards $53.5-$54.3 levels.