01-06-2018 10:30 AM
WTI crude oil prices edged more than 2% lower regardless of an immense draw in U.S. crude supplies as domestic output continued to expand.
According to data from the Energy Information Administration (EIA) - Inventories of U.S. crude fell by 3.620 million barrels for the week ended May 25, confounding expectations for a draw of just 0.400 million barrels,
Gasoline inventories rose by 0.534million barrels, missing expectations for a drop of 0.946 million barrels, while supplies of distillate rose by 0.634 million barrels, missing expectations for a draw of 1.129 million barrels.
According to preliminary EIA data, U.S. oil output continued its spreading out rising 215,000 barrels per day to 10.47 million barrels per day in March.
Crude oil prices moved to support line at $66. As the Rising Wedge chart pattern” is in a daily chart, crude oil prices currently enabled selling pressure on the way to support area. Crude oil prices maintained strong support for a few days at $65.75. If it breaks lower, then it would move towards to $64.23-61.90. It would be a risky trade. Risky traders buy on dips maintaining strict stop loss. We can expect a bounce back with a little bit profit at $67.50. Once it breaks below, then make a fresh short entry downside as the target is extended.