WTI Crude Oil Daily Analysis – September 7, 2017

Oil prices settled higher for the third day in a row on Wednesday, and edge higher on Thursday morning as the refinery activity resumed on the Gulf Coast, following the disruptions caused by Hurricane Harvey last week.

The development of Storm Irma gained investor’s interest, as the storm can create a serious disaster and add to fuel shortages.

Alexander Novak, Russian energy minister said on Tuesday that representatives from both Saudi Arabia and Russia had discussed on supply extension but that no specific resolution had yet been agreed on.

According to the American Petroleum Institute (API) data released on Wednesday – oil inventories rose by 2.79 million barrels at the end of last week, less than the expected 4.0 million barrels build.

Technical Outlook – Long-term View

Crude oil prices have formed “Megaphone chart pattern” as prices failed to hold above the resistance line at $50. It is likely that crude oil prices will make their third attempt to break above $50. A break above could lead towards $55. On the other hand, if it’s unable to break above $ 49.50, the downside momentum will continue towards $48-47.5.

The 50-day moving average crossovers 100-day moving average at $47.40 which indicates a bullish momentum.