Today, crude oil futures inched up amid another drawdown in U.S. stockpiles. Moreover, the concerns over supply as U.S. sanctions on Iran’s crude exports loom, although calls by U.S. President Donald Trump for lower oil prices dragged.

Investors are still pricing in a dip in inventories. As per EIA report, the stockpile 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, the traders are pricing in the shrinkage of supplies in November, due to sanctions on Iran.

Support Resistance

69.71 70.96
69.23 71.75
67.98 73.01
Key Trading Level: 70.49

The technical side of the market remains the same as crude oil continues to trade outside of the ascending triangle pattern which is supporting Oil near $70. Besides this, crude oil prices are trading above 20 and 50 periods EMA (exponential moving averages), which is demonstrating the bullish bias of traders.

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 $70 can cause further selling until $69.35. Good luck!