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Bulls Dominate Crude Oil – EIA Stockpile Data in Focus

During the early Asian session, WTI crude oil prices recovered after the report came from the American Petroleum Institute that US crude oil output dropped sharply last week. The American Petroleum Institute reported that crude oil output fell by 5.9 million barrels for the week closed 27 September against the estimates for an increase of 1.6 million barrels.

Besides, the report from the Institute of Supply Management showed that manufacturing activity in the US contracted to the lowest level in ten-years, pushing the stocks and WTI crude oil prices down earlier this week.

Today, economists are expecting the EIA to report a build of 2.0M barrels in inventories. Although the forecast should keep crude oil bearish, it’s trading steady due to EIA’s correlation with API. A draw in inventories report by API may also drive draws in EIA reports.

WTI Crude Oil – Technical Analysis

On the technical side, crude oil continues to trade within a bearish channel which is extending resistance at 54.65 area. On the lower side, support stays at 53.10 level.

The RSI and Stochastic are still holding in the bearish zone, under 50, suggesting odds of the bearish trend in crude oil today. Crude oil seems to form tweezers top pattern on the 4-hour chart today, which typically drives a bearish trend in the market.

Crude Oil - 4 Hour Chart - Forex Trading Signals

Daily Support and Resistance
S3 50.34
S2 52.13
S1 53.03
Pivot Point 53.91
R1 54.81
R2 55.69
R3 57.48

WTI Crude Oil – Forex Trading Signal

WTI crude oil can stay bearish below 54.65 area today to target 53.40. Violation of this target can drive more selling until 53.10 area.

Good luck!

 

 

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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