February 28, 2019 | SQUARED DIRECT - Crude oil prices surged during yesterday's session after the weekly report from US EIA registered a surprise drawdown in inventories.
The stockpile declined 8.6 million barrels last week versus market consensus favouring 2.8 million barrels of addition. Additionally, OPEC members’ refusal to respect the U.S. President Donald Trump’s comments demanding supply increase also helped support the upward move for the black gold's prices.
On the other hand, the statements from the US trade representative Robert Lighthizer were downbeat; the statement seems to push for the structural changes into the world’s second-largest economy, which in turn is less likely to be respected from the dragon nation and can cause a problem for the smooth running of a deal.
Crude oil price technical analysis
Crude prices surged during yesterday's session, climbing back above the $57 level. The price is currently in a correction mode as its holding just above the $56.69 level. The price seems to be heading for the $56.06 level for a retest before finding support, so this will be the level we will be focusing on.
Support: 56.69 / 56.06
Resistance: 57.32 / 58.02
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