WTI Oil Outlook: Oil stands at the front foot on possible production cut increase/fall in US oil inventories
|US CRUDE OIL
WTI oil stands at the front foot on Wednesday, following Tuesday's bounce that completed hammer reversal pattern. Draw of US crude inventories (API report showed 0.9 mln bls draw vs 2.5 mln bls build f/c) and signs from OPEC for stronger cut of production (OPEC announced 800,000 bpd cut), with the action being led by Saudi Arabia, add to positive near-term outlook and boosts price action. Focus turns towards EIA crude inventories report, due later today (2.6 mln bls build f/c vs 1.2 mln bls build previous week), with surprise on lower than expected build or draw in oil inventories to further boost oil prices. Fresh bulls eye pivotal barrier at $54.01 (Fibo 61.8% of $55.73/$51.23, craked on Tuesday) clear break of which is needed to confirm reversal and open way towards key barriers at $55.15/55 ( daily cloud top / Fibo 38.2% of $76.88/$42.36 fall). Rising 30SMA tracks the advance for over one month and marks solid support at $52.45, which is expected to contain dips. Only return and close below $50.99/62 (55SMA / Fibo 38.2% of $42.36/$55.73) would neutralize bulls and signal further weakness.
Res: 54.01; 54.67; 55.15; 55.55
Sup: 53.31; 52.95; 52.45; 51.78
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