US CRUDE OIL
US crude stocks miss could further pressure oil price
WTI oil was modestly lower after US weekly crude stocks data which showed draw of 1.5 million barrels last week, well below forecasted 3.0 million barrels draw and previous week’s draw of 7.2 million barrels.
Today’s numbers were disappointing despite showing continuous draw, as the figure strongly undershot expectations.
In addition, oil prices remain under strong pressure after Tuesday’s sharp fall (oil price was down 2.8% for the day) smashed by unexpected rise in US crude stocks by 1.7 million barrels vs forecasted 2.9 million barrels draw, API report showed.
Tuesday’s long bearish daily candle continues to weigh as the price broke and closed below 200SMA ($49.40) but managed to close above pivotal support at $48.48 (Fibo 38.2% of $45.39/$50.39 upleg) which was dented on Tuesday spike to $48.35 daily low.
Sustained break below $48.48 pivot would generate bearish signal for extended pullback from fresh over two-month highs at $50.39/42 towards targets at $47.96 (100SMA) and $47.30 (Fibo 61.8%) in extension.
Alternative scenario requires close above 200SMA to shift near term bias higher.
Res: 49.28; 49.40; 50.00; 50.42
Sup: 48.48; 48.28; 47.96; 47.30