Strong rise of crude inventories weighs on oil prices
WTI oil price fell below $63 handle on Thursday, pressuring strong supports at $62.81/76 (rising 30SMA / Wednesday’s low), weighed by record US crude production that resulted in strong rise in US crude inventories (EIA report on Wednesday showed 9.9 mln bls build compared to forecasted rise of 1.4 mln bls).
On the other side, political unrest in Venezuela and sanctions on Iran, keep oil market tight and attempt to offset negative impact from rising crude stocks.
Near-term risk is shifted to the downside, but the action needs confirmation on close below 30SMA and 26 Apr correction low ($62.27) that would open way for deeper pullback from new 2019 high at $66.58.
Bullish scenario would require lift above converging 20/10SMA’s ($64.03 / 29) to shift focus higher.
Res: 63.65; 64.03; 64.29; 64.73
Sup: 62.45; 62.27; 61.81; 60.75