During the Asian session, WTI crude oil prices climbed as the weekly US crude inventories draw that came in approximately three times bigger that the level expected. The WTI US crude oil surged over 0.3% to trade at $56.05. The report from the US Energy Information Administration reveales that the WTI crude output dropped by 10.84 million barrels for the week to 19 July.

The EIA also released gasoline inventories, which dropped by 226,000 barrels, compared to expectations for a draw of 730,000 barrels. Besides, distillate inventories increased by 613,00 barrels, compared to forecasts for a decline of 499,000 barrels

The recent storm closed more than half of the WTI crude oil production in the US Gulf of Mexico.

Oil technicals haven’t changed much as crude oil continues to trade sideways for another trading day as investors seem to face indecision whether to go long or short over mixed fundamentals. The 50 and 100 periods moving averages stay around the 58 areas, giving us enough room to complete retracement. On the lower side, crude may find support at 55.50 and 54.75 zones.

Crude Oil – Trade Idea
The idea is to stay bullish above 55.50 with a stop loss below 55.10 and take profit of around 56.45.

Good luck!