WTI eases further but remains within n/t consolidation range
WTI oil extends weakness on Thursday, maintaining negative near-term tone despite stronger than expected fall in US crude inventories (EIA report showed draw of 1.4 mln bls vs forecasted draw of 1.2 mln bls) as smaller than expected fall in gasoline stocks (1.2 mln bls vs forecasted drop of 2.1 mln bls) offset positive impact.
Current easing is mainly of technical nature as overbought daily studies signaled adjustment and strong bullish momentum started to ease.
Oil prices remain well supported by OPEC+ output reduction, significant drop of oil export from Iran due to sanctions and rising concerns of stronger disruption of oil production from Libya, due to military actions.
The price action remains within near-term range ($62.98/$64.77) and in consolidative phase before bulls resume.
Caution on extension below range floor (62.98) and rising 20SMA ($62.25) which would sideline immediate bulls for deeper correction towards key support at $60.95 (converged 30/200SMA’s).
Res: 63.90; 64.60; 64.77; 65.00
Sup: 62.98; 62.25; 61.81; 60.95