Crude oil prices failed to gain traction in the post-settlement trade on Tuesday even after the API reported a larger-than-expected draw in U.S. crude oil inventories. As of writing, the barrel of West Texas Intermediate was trading at $49.05, losing 0.7% on the day.
Although crude oil stocks in the U.S. fell by 7.8 million barrels to 478.4 million, further details of the API report showed that refinery crude runs rose by 91,000 barrels per day while crude imports fell by 30,000 barrels per day, signaling towards rising production levels in the U.S.
On Wednesday, the U.S. Energy Information Administration will release its stock report as well, which is expected to decrease by 2.8 million barrels for the week ending August 4. Earlier in the day, the EIA released its forecast report, which included upward revisions to 2017 and 2018 oil production forecasts, not allowing WTI to gather momentum despite some optimistic headlines from the recent OPEC meeting in Abu Dhabi.
In the meantime, the greenback rallied on the back of today's upbeat macro data from the U.S., increasing the pressure on the WTI. As of writing, the US Dollar Index was at 93.50, up 0.2% on the day.
Technical outlook
The barrel of WTI may need to make a daily close above $50 (psychological level) to start a healthy recovery movement. $51.05 and $52 (May 25 high) could be seen as next targets above that level. On the downside, supports align at $47.85 (Jul. 26 low), $46.40 (Jul. 25 low) and $45 (psychological level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD extends gains due to improved risk appetite
The Australian Dollar maintained its winning streak for the fourth consecutive session on Monday, buoyed by a hawkish sentiment surrounding the Reserve Bank of Australia. This optimism bolsters the strength of the Aussie Dollar, providing support to the AUD/USD pair.
USD/JPY snaps three-day losing streak above 153.50, Yellen counsels caution on currency intervention
The USD/JPY pair snap a three-day losing streak during the Asian trading hours on Monday. The uptick of the pair is bolstered by the modest rebound of the US Dollar and US Treasury Secretary Janet Yellen’s comments on potential Japanese interventions last week.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.