WTI Crude Oil Intraday: Supported by Lower Output Expectations
George Lam May 13, 2020 3:08 AM
Saudi Arabia announced plans to cut oil production in June by an extra 1 million barrels a day to 7.5 million, easing supply side concerns...
Source: Trading Economics
On the other hand, the American Petroleum Institute estimated that U.S. crude oil inventories would increase by 7.58 million barrels in the week ending May 8, more than 4.15 million barrels expected, though still showing a moderating growth as shown on the chart above. The U.S. Energy Information Administration (EIA) will report official crude inventories later today (+4.32 million barrels expected).
From a technical point of view, WTI crude oil futures (June contract) maintains upside momentum as shown on the 1-hour chart. It keeps trading within a consolidation range after a recent rally. Nevertheless, it has already gone past the 61.8% Fibonacci retracement resistance level of the decline started on May 7. The level at $23.60 might be considered as the nearest support level, while the 1st and 2nd resistance are likely to be located at $26.75 and $28.20 respectively. Alternatively, a break below $23.60 would suggest that the next support at $22.60 may be threatened.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.