WTI Crude Oil Daily Analysis – October 4, 2017

Oil prices settled lower on Tuesday as investors took profits after big third-quarter gains. On Wednesday morning, WTI crude oil dropped 0.5% to trade at $50.17 as of 8:00 GMT

According to reports from the American Petroleum Institute on Tuesday – Crude oil inventories fell by 4.08 million barrels last week which is far more than expected while gasoline supplies gained 4.91 million barrels and distillates eased by 584,000 barrels. Supplies at the oil storage hub in Cushing, Oklahoma, rose by 2.084 million barrels.

Crude oil inventories were down by 467,000 barrels, while distillates likely declined by 1.1917 million barrels and gasoline stocks rose 967,000 barrels

The Energy Information Administration (EIA) report is due later on today.

Technical View

Crude oil 4H chart has formed a “Rising Wedge Pattern”. Prices consolidate on the support area at $50. A break of the support line could continue the selling pressure towards $47-$49 levels.

A bounce back can be expected at $51-52 levels as the previous resistance has now become support.  It is likely to break below which may be a selling opportunity towards $47-$49.