Crude oil price was little moved after data from the American Petroleum Institute (API) showed that there was a drawdown in inventories last week.
March 13, OctaFX – The drawdowns increased by 2.58 million barrels. The reduction in inventories came a week after they increased by more than 7.9 million barrels. Later today, the Energy Information Administration (EIA) will release the inventory numbers, which are expected to show an increase of 2.9 million barrels.
The commitment of traders (COT) data released on Friday showed that more traders expect the price to move up, fueled by a reduction of OPEC supplies and a relatively strong demand.
Crude oil price forecast
Crude oil price moved slightly higher after the release of lower inventories. It is now trading at $57.42, which is slightly higher than yesterday’s low of $56.90. On the hourly chart, the pair has formed a v-shape pattern, after climbing from the low of 54.70 starting on Friday last week.
This price is along the middle line of the Bollinger Bands while the RSI has remained under the 70 level. The ADX has moved to below 20. There is a possibility that the pair will continue the upward momentum to test the resistance level of 60.
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