Market News & Analysis
WTI Crude Oil Intraday: Supported by Lower Output Expectations
George Lam May 13, 2020 12:08 PM
Source: Trading Economics
On the other hand, the American Petroleum Institute estimated that U.S. crude oil inventories would increase by 7.58 million barrels in the week ending May 8, more than 4.15 million barrels expected, though still showing a moderating growth as shown on the chart above. The U.S. Energy Information Administration (EIA) will report official crude inventories later today (+4.32 million barrels expected).
From a technical point of view, WTI crude oil futures (June contract) maintains upside momentum as shown on the 1-hour chart. It keeps trading within a consolidation range after a recent rally. Nevertheless, it has already gone past the 61.8% Fibonacci retracement resistance level of the decline started on May 7. The level at $23.60 might be considered as the nearest support level, while the 1st and 2nd resistance are likely to be located at $26.75 and $28.20 respectively. Alternatively, a break below $23.60 would suggest that the next support at $22.60 may be threatened.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.