OPEC Meeting in June 2018


31-05-2018 10:30 AM

Oil prices edged higher on Wednesday but dropped on Thursday, weighed down by a surprise rise in U.S inventories and by expectations that OPEC and other producers could increase output at a meeting in June.

According to data from industry group -the American Petroleum Institute U.S. crude inventories rose by 1 million barrels in the week to May 25 to 434.9 million barrels, although analysts had expected a decrease of 525,000 barrels.

Data from the Energy Information Administration is due at 11 a.m. EDT on Thursday.

Crude oil Inventory forecast: Time Actual Forecast Previous
API Weekly Crude Oil Stock 2:00 AM 1.001M ----- -1.300M
Crude Oil Inventories 8:00 PM ----- 2.214M 5.778M
EIA Weekly Distillates Stocks 8Pm 8:00 PM ----- ----- -0.951M
Gasoline Inventories 8:00 PM ----- ----- 1.883M

Technical chart


Technical outlook

Crude oil prices pulled back from long-term support line at $66. As the Rising Wedge chart pattern” is in a 4H chart, crude oil prices turned short-term bullish as it was unable to break lower for the past two days and maintained strong support at $66. Today trailing stop loss is revised to $67.30 level. We can utilize the long entry which is likely to move upside towards $68.75-70.25 level. We can forecast today that the crude oil EIA inventory report will depict neutral range. It is likely for a positive momentum based on the fundamental news, which will reflect a more bullish trend.