Oil Feels Weak Ahead Of EIA Inventories, After Losing $4 On API Yesterday

(CTN News) – The price of crude oil has been mostly bearish since June of this year, and it has tested the area above $70 on a couple of occasions.

There was a period of bearishness in the market but it turned bullish at the beginning of this month. This is because the price could not be pushed below the support zone.

In addition, oil prices have recently been boosted by China’s reopening in the past couple of weeks.

However, that’s still a long way off, while liquidation is also clouding the picture this week due to the holiday period.

In the earlier part of this week, the price of US WTI crude moved but failed to hold gains there. Yesterday we saw a strong reversal to the bearish side of the trade.

The API inventory numbers should have played a part in the decline, but the decline was too strong just on the basis of these figures alone.

During the past week, the headlines have been dominated by privately surveyed oil stock data, ahead of official government data due later today.

This is the second consecutive week of a draw. As a result of severe winter storms in the US, some refineries were forced to close for a short period of time, affecting this week’s data.

In the coming week, the EIA will release its inventory figures and it is expected to show a drawdown of -1.2 million barrels compared to the previous week’s drawdown of 6 million barrels.

Chart of US WTI Oil H1 – The 200 SMA held as support during this period

Following the sharp reversal in oil prices yesterday, the price of oil lost almost $4 

The price of US WTI crude oil has been held by moving averages, with the 200 SMA (purple) changing to support immediately after it was broken, and then again yesterday when the price declined it was held by the 200 SMA again.

We opened a sell signal on Oil when the price was falling, which closed in profit but the signal closed in profit, but the overall trend remains bullish.

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