WTI Crude Oil Daily Analysis – November 22, 2017
Oil prices edged higher on Tuesday and trade higher on Wednesday morning after yesterday’s report that showed a drop in U.S. crude inventories and traders’ expectations that an OPEC-led production cut will be extended beyond March 2018. Oil prices are also affected by Canadian pipeline disruption which decreases the supply from Canada to the United States. WTI Crude oil is trading at $57.91, up 1.90%.
According to the American Petroleum Institute (API) – US crude stocks fell by 6.356 million barrels last week.
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Analysts expected a 1.545 million barrels drop in crude stocks, while distillate stocks were down by 1.164 million barrels and gasoline inventories were expected to rise by 737,000 barrels.
The Energy Information Administration (EIA) is due to release its official data later on today.
Technical view
Crude Oil 4H chart has formed the “Ascending broadening wedge” pattern. The last few sessions of the market have been bullish and breaking resistance lines which indicate that the market might turn back to bullish momentum.
WTI crude oil is currently trading with a bullish momentum. The $58 will be a major test for the black gold.