Crude Oil Traders Focused on OPEC Meeting
WTI crude oil prices edged 1.2% lower on data revealingan astonishing build in U.S. crude supplies and an ongoing expansion in U.S. output.
According to data from the Energy Information Administration (EIA) - Inventories of U.S. crude rose by 2.072 million barrels for the week ended June 1, confounding expectations for a draw of 2.000 million barrels.
Crude imports rose 715,000 barrels per day (bpd) last week to 8.3 million barrels per day (bpd), while exports dropped 500,000 bpd to 1.7 million bpd.
Gasoline inventories rose by 4.603 million barrels, missing outlook for an increase of just 0.587 million barrels, while supplies of distillate rose by 2.165 million barrels, missing outlook for a build of 0.784 million barrels.
I have made a short-term analysis of crude oil daily chart which has formed a “falling Wedge pattern “. In this pattern, the short-term bullish period is over as Crude oil prices retested resistance line which was the previous support and has now become the resistance line (an upward sloping trend line) that comes around $66.
Additional indicator for the RSI had oversold and triggered the level 33% which will pull back to 38% level as an indication that more correction towards 25% level can be expected. At the foremost, the expected next support can be seen at $62.The target would wait for selling to occur and continue towards downside target $64-63 level. However, traders wait in anticipation for June 22-OPEC meeting.