EIA Stockpile Report Underpins Crude Oil – Quick Technical Outlook - Forex News by FX Leaders

EIA Stockpile Report Underpins Crude Oil – Quick Technical Outlook

Posted Thursday, September 20, 2018 by
Arslan Butt • 1 min read

Today, crude oil is gaining for the third consecutive day amid another drawdown in U.S. stockpiles. Meanwhile, signs that OPEC (Organization of Petroleum Exporting Counties) may not boost production to address contracting supplies from Iran also supported prices.

As per the EIA report, the crude oil inventories dipped by 2.1M barrels, compared with a forecast for a decrease of 2.7M barrels. The fall in inventories also signifies the increased demand for crude oil in the market. Perhaps, traders are pricing in the shrinkage of supplies in November, due to sanctions on Iran.

Support Resistance
69.91 71.59
68.8 72.17
67.11 73.85
Key Trading Level: 70.48

The technical outlook of crude oil remains bullish. For instance, crude oil is trading above 20 and 50 periods EMA (exponential moving averages), which is demonstrating the bullish bias of traders. The RSI also holds near 68 (>50), representing the bullish trend.

Crude oil is likely to face an immediate resistance near $71.65 and above this, oil can go for $72.75. Whereas, the bearish breakout of $71 can cause further selling until $70.25. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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