CRUDE OIL TALKING POINTS:Crude oil costs surge after largest US inventories attract 2 monthsSwelling US, OPEC+ provides could restrict upside foll
CRUDE OIL TALKING POINTS:
- Crude oil costs surge after largest US inventories attract 2 months
- Swelling US, OPEC+ provides could restrict upside follow-through scope
- Key chart resistance eyed close to $64/bbl on path to March swing prime
Really helpful by Ilya Spivak
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Crude oil costs are digesting good points having soared Wednesday due to a larger-than-expected draw on US inventories reported in weekly EIA stream statistics. The report confirmed stockpiles unexpectedly shed 5.89 million barrels, marking the largest decline in practically two months.
A pickup in US shopper confidence could assist maintain costs well-supported into the week-end. A survey from the College of Michigan is anticipated to place sentiment on the highest since March 2020, primarily marking a return to ranges previous the Covid-19 outbreak. Which will buoy the power demand outlook.
Nevertheless, the financial revival in opposition to the backdrop of beneficiant fiscal and financial stimulus in addition to increasing vaccination has introduced with it rebuilding US output ranges. Information from Baker Hughes is because of present the variety of energetic extraction rigs hit a 12-month excessive final week.
This pickup in manufacturing coupled with the unwinding of the OPEC+ provide cap scheme could restrict scope for crude oil value good points. That is significantly as implied demand ranges telegraphed in DOE statistics hit the one-year ceiling close to 18 million barrels/day.
Really helpful by Ilya Spivak
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CRUDE OIL TECHNICAL ANALYSIS
Crude oil costs shot increased to retest the inflection degree at 63.86. A each day shut above this barrier would name into query the bearish reversal registered in mid-March and open the door for a retest of the swing prime at 67.98. Alternatively, slipping again under the March 30 swing prime at 62.27 places the vary flooring could set the stage for a return again under $60/bbl to revisit the vary flooring at 57.25.
Crude oil value chart created utilizing TradingView
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— Written by Ilya Spivak, Head Strategist, APAC for DailyFX
To contact Ilya, use the feedback part under or @IlyaSpivak on Twitter
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