WTI Oil - Sell-off ran out of steam below 4-hr 200-MA
|WTI Oil fell to a low of $50.06 in the NY session after US reported a surprise build in the gasoline inventories.
The drop below the 4-hr 200-MA of $50.44 proved to be short lived as prices recovered partially in Asia to trade around $51.15/barrel. The recovery appears to be chart driven, given the inventory data was anything but encouraging.
The US Energy Information Administration (EIA) data showed crude stocks fell 1 million barrels in the latest week. The drawdown was smaller than expected. Meanwhile, the Gasoline stocks jumped 1.5 million barrels, despite the heavier refining activity.
The buildup in gasoline indicates the demand isn’t picking up as expected ahead of the driving season in the US.
WTI Oil Technical Levels
A break above $51.39 (50-DMA) would expose $51.89 (100-DMA) and $52.36 (5-DMA). On the other hand, a breakdown of support at $50.93 would open doors for a revisit to $50.06 (previous day’s low) and $48.96 (200-DMA).
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