Oil price remains constructive despite another rise in US crude stocks
WTI oil jumped over half a dollar in immediate reaction on release of US weekly crude inventories data which showed a build of stocks by 1.2 mln bls, which is above forecast for 0.1 mln bls build but well below last week’s 5.7 mln bls rise.
The sentiment was weak and oil price was descending since release of API report late Tuesday which showed a build of 3.9 mln bls and added to market concerns of extended build in crude stockpiles, despite recovery of demand and discipline among producers.
Much lower than estimated rise in crude stocks improved near-term mood, sending oil price sharply higher.
Fresh probe above $38 mark after four consecutive daily closes below this level, requires eventual close above here to unmask psychological $40 barrier after previous attack on 8 June stalled.
Daily MA’s turned to full bullish configuration and support the action, but sideways-moving momentum could be an obstacle, however, near-term action is expected to remain biased higher while holding above rising 20DMA ($36.13).
Res: 38.72; 39.03; 40.00; 40.41
Sup: 37.73; 37.17; 36.13; 34.33