During the Asian session, WTI crude oil prices rose on the American Petroleum Institute (API) report which published that the United States crude oil stockpiles dropped for the first time in 3 weeks. WTI crude oil prices soared by 0.3% to $56.32.

The American Petroleum Institute announced late Tuesday that US crude stocks declined by 3.5 million barrels. The API also reportedly revealed a stockpile drop of 403,000 barrels in gasoline, while distillate stocks increased by 1.8 million barrels.

Crude Oil Inventories Reports

The Energy Information Administration will release its weekly petroleum report later today and it’s expected to post a draw of -1.4M vs. 1.6M barrels. Oil traders will wait for numbers before taking positions. Investors will also keep an eye on the release of the United States Federal Reserve’s July minutes and Federal Reserve Chairman Jerome Powell’s speech this week.

On the other hand, the concerns in the Middle East are still in focus as the United Sated Sectary of State Mike Pompeo told the country will take all kinds of action to stop an Iranian tanker sailing in the Mediterranean from delivering crude oil to Syria.

Crude oil has violated the bearish trendline on the 4-hourly timeframes. The trendline was extending resistance around 56.25 and closing of 4 hourly candles above this level are suggesting bullish bias.

Daily Support and Resistance

S3 53.08

S2 54.51

S1 55.3

Pivot Point 55.94

R1 56.72

R2 57.36

R3 58.79

Crude Oil – Trade Idea

I will be looking to stay bullish above 56.45 to target 56.80 and 57.15 while having a stop loss around 56.

Good luck!