WTI Crude Oil Daily Analysis – September 14, 2017

Crude oil prices edged higher on Wednesday after the International Energy Agency released its report showing that crude oil U.S. supplies rose more than expected and the global oil demand this year will rise to its highest since 2015.

WTI crude oil was trading at 49.30, Brent oil was trading at 55.09 as of 8:15 GMT.

An increase of around 5.9m barrels of U.S crude was noted in the week ended Sept. 8, the expected rise was only 3.2m barrels. Gasoline inventories were down by 8.4m barrels approximately, whereas the expected draw was 2m barrels. Distillate stockpiles were also down by 3.2m barrels, peaking expectations of a decline of 1.5m barrels.

The impact of storm Harvey has led to the bigger-than-expected draw in gasoline stockpiles.

Technical View

On the daily chart, crude oil prices have formed a “Symmetrical triangle”. Support still holds at $ 47. If prices break above the resistance, then the next target is $50.60 and above the 200-day moving average at $55. It’s likely that crude oil prices will make their third attempt to retest the $50.

On the daily chart, the 50-day moving average crossed over the 100-day moving average at $47.40, indicating bullish momentum.