December 13, OctaFX – The price of crude oil declined sharply after inventory data from the EIA yesterday. In the Asian session, the price moved up slightly. Numbers showed that in the past week, inventories had reduced by 1.2 million barrels. This was a lower reduction than investors were expecting.
Investors were expecting the drawdown to be more than 2.99 million barrels. Earlier on, the American Petroleum Institute (API) had released numbers that showed an inventory drawdown of more than 10 million barrels.
Crude Oil Technical Analysis
The XTIUSD pair continued to make big swings in overnight trading. The pair reached an intraday low of 51 and then started moving up. On the hourly chart, the price is between the lower and middle band of the Bollinger Bands.
However, the pair’s recent swings are evident as shown in the hourly chart below. After getting to the oversold level, the pair’s RSI has moved up a bit to just below 40. XTIUSD will likely continue being volatile as traders continue to think about the demand for 2019.
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