WTI Crude Oil Daily Analysis – December 21, 2017
Crude oil prices edged higher on Wednesday and continue to trade near yearly high on Thursday morning weighed by the larger-than-expected drop in U.S. inventories and the disruption of the North Sea Forties pipeline system.
On Wednesday, According to the Energy Information Administration – U.S. crude stocks fell by 6.5 million barrels, more than expected, in the week to Dec. 15, while gasoline stocks rose 1.2 million barrels, less than predicted.
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West Texas Intermediate crude futures dropped -0.19%, trading at $58.09 a barrel, while Brent crude dropped -0.37% at $64.31 a barrel.
Crude stocks, excluding the U.S. Strategic Petroleum Reserve, are at 436.5 million barrels, the lowest since October 2015.
Technical view
Crude Oil Daily chart has formed the “Symmetrical triangle” pattern. The trend remains bullish as prices retested the channel’s support slope line near $56.50. As per the technical aspects of the pattern, the market continues in the same trend.
Once it breaks above the resistance level at $58.50, the rally could test $59-$59.50 levels in the upcoming sessions. Alternatively, if resistance holds strong then the market might have a chance to turn into bearish momentum.