Today, the Energy Information Administration will release the US Crude Levelse report. ADS Securities talks about US crude oil inventories WTI price impact.
24 May, ADS Securities – The Brent crude traded higher for the fifth consecutive session yesterday after Iraq agreed to extend the proposed 9-month extension to OPEC oil production-cut deal, eliminating the last obstacles to the agreement.
US crude oil inventories WTI price impact
Meanwhile, a fall in weekly crude oil inventories in the US also lifted the crude prices. As of now, the price action appears to be bearish, suggesting at possibility of correction in the near term. Additionally, a potential signal line crossover from above by the MACD indicator, further substantiates the bearish stance.
Key support is seen at the psychological $54.00 level, followed by the $53.75 where EMA 55 is trading and $53.45 levels. A move back below the latter might reverse the main trend to bearish. On the flipside, key resistance is positioned at the $54.50 level, followed by the $54.95 and $55.10 levels.
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