WTI Crude Oil Daily Analysis – November 2, 2017

WTI Crude oil prices settled lower on Wednesday but gained momentum on Thursday morning as crude inventories dropped. WTI crude oil is trading at 54.42, +0.22% as of 10:00 GMT.

According to data from the Energy Information Administration (EIA) on Wednesday – U.S. commercial crude oil inventories fell by 2.4 million barrels in the week to Oct. 27 to 454.9 million barrels, although 46,000 barrels per day (bpd) increased in production to 9.6 million bpd. U.S. crude production is now up over 13 percent since mid-2016.

It also added that a record 2.1 million bpd of U.S. crude was exported in the latest week. However, traders feel that this was due to the broad discount provided by WTI to Brent which makes overseas sales profitable.

Technical View

Crude oil prices have formed the “Rising Wedge Pattern”. Currently, prices are trading on the intern dotted support line at $54.

A break below could lead the selling pressure towards the next support line at $52.50. Alternatively, if it does not break below then it is likely to travel towards upper resistance line at $55.50.