Crude oil trend bullish & crude oil turn bullish as EIA inventory report

Crudeoil

14-06-2018 10:45AM

WTI crude oil prices edged higher on Wednesday as data revealed a massive draw in U.S. crude supplies regardless of a progress expansion in output.

According to data from the Energy Information Administration (EIA) -Inventories of U.S. crude dropped by 4.143 million barrels for the week ended June 8, well above expectations for a draw of 1.440 million barrels.

Crude imports dropped 247,000 barrels per day (bpd) last week to 8.1 million barrels per day (bpd), while exports rose 300,000 bpd.

Gasoline inventories dropped by 2.271 million barrels, perplexing expectations for an increase of 0.443 million barrels, while supplies of distillate surprisingly dropped by 2.101 million barrels, topping expectations for a build of 0.200 million barrels.

Technical chart


Crude

Technical outlook

Crude oil prices closed nearby resistance line wherein the “Rising wedge pattern" On the analysis of the 4h chart in this pattern, the prices currently indicate bullish nature on a daily closing basis, which means closing on the very day higher high candle wise.

It will drive towards upside $67-68 level which is the next level of resistance place and if prices break support at $65.90 then it would turn from positive to negative territory. If crude oil prices do not break below the support as I mentioned, then it would turn further bullish towards upside $66.80. Traders wait in anticipation for the OPEC meeting scheduled on June 22nd.