Crude Oil Trades Bullish Despite Bearish EIA Report – What’s Going On?
Arslan Butt • 1 min read
The WTI crude oil continues to trade bullish despite an unexpected rise in crude oil inventories last week. What’s going on here and what to expect from crude oil now? Let’s find out…
WTI Crude Oil – Fundamentals Outlook
On Wednesday, the EIA (Energy Information Administration) reported a build of a 6.3m barrels in the week of October 19, compared with analyst expectations for an increase of 3.7 million barrels. It’s been five weeks now that the WTI inventories are showing build and have risen to 422m barrels.
As we know, there’s a positive correlation between the EIA and API reports. On Tuesday, the API (American Petroleum Institute) reported a build of 9.9m barrels vs. the expectations of 3.7m barrels. So, the rise in crude oil inventories was already priced in and the market reversed back after a slight dip to $66.02.
WTI Crude Oil – Technical Outlook
At the moment, crude oil is trading near the 50% Fibonacci retracement level which is extending a solid resistance to oil near $67. The same level is also important because 50 – periods exponential moving average is extending resistance at $67.
It will be nice to stay bearish below $67 to target 50 pips, while bullish seems to loom around $66.