A drop in the US oil inventories last week added credence to
the oversold technical conditions and yielded correction/relief rally in the
oil prices.
At the time of writing, Brent oil was trading just short of
$55 handle. Prices clocked a 7-month low of $44.34 on Wednesday. The daily RSI
is still oversold. WTI oil printed a low of $42.03 yesterday and was last seen
trading around $42.65 levels.
The data released in the US yesterday showed the inventories
fell 2.5 million barrels in the week ended June 16. Markets were expecting a
decline of 2.1 million barrels. The good news didn’t just stop there. Gasoline
stocks decline 578K barrels, beating the estimated gain of 443K barrels.
Despite the bullish data, the recovery in oil prices is
anaemic. Markets also shrugged off bullish sound bites from the OPEC - members
are considering deeper production cuts. As mentioned earlier, the RSI is
oversold, so a technical correction may gather pace.
Current Crude Oil
Price:
Currently, Crude Oil is trading at 42.52,
up +0.53%, having posted a daily high at 42.72 and low at 42.30.
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with stop loss and target price visit www.mmfsolutions.sg
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