Oil is Strong

Could Crude Oil Holding $75: Slight Inventory Build

Posted Wednesday, October 3, 2018 by
Rowan Crosby • 1 min read

Crude Oil has been in the midst of a bull run recently and we are now seeing prices at the highs of the year.

We’ve spent a few days at $75 now which is a big level, especially as we head into the weekly inventory data.

Late yesterday we saw a slight build in inventories, however, that was less than anticipated with 0.9M vs 1.9M expected.

That should give us potentially another bullish lead on Wednesday, assuming the EIA data follows suit.

Remember the run-up in prices is on the back of supply concerns and a lower than anticipated build is bullish.

 

The Technical Picture

For the time being, $75 appears to be resistance.

Really in the year we probably felt that CL wouldn’t see anything upwards of $75 for 2018 in total. We are now seriously under threat with some analysts suggesting $100 isn’t out of the question.

For now though I’ll be watching the round number levels closely as I feel that $80 would be the clear next target.

CL
CL – 240 min.
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About the author

Rowan Crosby is our Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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