Crude oil Slips on EIA Report, but Trading Range Remains Intact

On Thursday, crude oil prices trade lower at $64, down from $64.85. The oil market is pressed by the EIA stockpile reports. The US crude inventories mounted to their highest levels in roughly 17 months amid record output. Besides, the global economic slowdown and the recent drop in world GDP forecast by IMF have cast doubt over growth in demand for fuel.

According to the Energy Information Administration, the US crude inventories increased 7 million barrels to 456.6 million barrels in the last week. For your info, it’s the highest since November 2017.

On the other hand, the US crude oil output stays at a record 12.2 million barrels per day (bpd). With that, the United States overtakes Russia and Saudi Arabia to become the biggest oil producer.

The technical side of the market remains unchanged as oil continues to trade in line with our forecasts. WTI crude oil is facing strong support above 63.85 along with resistance at $64.75. It’s a small trading range and may help us secure a good trade today.

Support Resistance
63.66 64.72
63.13 65.25
62.06 66.32
Key Trading Level: 64.19

I’m looking to stay bearish below $63.85 with a stop loss above $64.35 and take profit around $63. On the upper side, we can also set a buy stop somewhere around $64.75 to target $65.35.

Good luck!