Oil Price - Technical Analysis
Posted: Wed Jan 24, 2018 9:51 am
The crude oil market is bullish. WTI is poised for a breakout punch over the previous $64.83 high, launching a drive into the $66 - $67 range. Yesterday's probe over 64.83+ suggests a preliminary breakout and favors rallies today. Any corrective setbacks should hold yesterday's range to maintain the upturn from corrections. A roll off through 63.88 cautions for a negative turn. There are support levels at 62.70 and 61.50.
Traders may react to a build in U.S. oil inventories. A build is expected per API report last night.
This is the time of year when the U.S. must build crude oil inventories to meet a big spike in demand that is coming in Q2. Demand spikes every year in April & May as refiners must ramp up production of summer blend gasoline, which requires more crude oil because "summer blends" cannot have as much butane. In 2017, demand for oil increased by 2.3 million barrels from Q1 to Q2.
Traders may react to a build in U.S. oil inventories. A build is expected per API report last night.
This is the time of year when the U.S. must build crude oil inventories to meet a big spike in demand that is coming in Q2. Demand spikes every year in April & May as refiners must ramp up production of summer blend gasoline, which requires more crude oil because "summer blends" cannot have as much butane. In 2017, demand for oil increased by 2.3 million barrels from Q1 to Q2.