Helped by continued inventory draws
The price of crude oil is trading up about $0.40 or 0.69% at $58.45. If the gains are able to hold it will be the 5th day in a row that prices have moved higher. Yesterday’s close was at $58.05.
Technically, yesterday the price moved above the 200 hour MA (green line in the chart above) currently at $57.23 That help the bullish bias.
Today the pair has continued to be supported and pushed higher. The price is approaching the 100 day MA at $59.24. That is the next target on the daily. A move above would be more bullish for the contract folllowed by a break above a topside trend line at $59.72.
Risk for longs from the daily chart, would be a move back below the 200 day MA at $57.23.
Helping the move today, is the private inventory data which showed another surprise drawdown. The numbers showed that inventories fell by -6.024M barrels.
The DOE data will be released tomorrow. Recall last week inventories showed a draw of -10.835M barrels. In fact, the data shows that the last 6 weeks has seen an average draw of -6.738M barrels. Those are big numbers.
Now although the inventory data has been sucking up supply over the last 6 weeks, the price of oil is still below the July high at $60.94 and the April highs at $66.60 level. So traders need to be careful. However with the contract up for the 5th day, and the price back above the 200 day MA, let’s see how far the contract can run.
Inventory data from the DOE will be released at 10:30 AM ET tomorrow.