Crude Oil Feeling Weak Ahead of EIA Inventories, After Losing $4 on API Yesterday

Crude Oil has been mostly bearish since June this year and it tested the area above $70 a couple of times. But it turned bullish in the second week of this month after sellers failed to push the price below that support zone. Besides that Oil has been catching a bid from China’s reopening in the last two weeks, but that’s still to play out further ahead into 2023 while holiday period liquidity this week is clouding the picture too.

The price of US WTI crude moved above $80 earlier this week, but it failed to hold gains up there and yesterday we saw a strong bearish reversal. The API inventory numbers should have played a part, but the decline was too strong just on those figures. This is from the privately surveyed oil stock data ahead of official government EIA data later today.

Via Twitter:

This is the second consecutive week of a headline draw. Severe winter storms in the US have forced some closures in refineries and will mess with the data for this week. The EIA inventory figures are expected to show a drawdown of -1.2 million barrels for last week, coming after a 6 million drawdown in the previous week.

US WTI Oil H1 Chart – The 200 SMA Held As Support

Oil lost almost $4 yesterday after the sharp reversal 

US WTI crude Oil has been held by moving averages, with the 200 SMA (purple) turning into support immediately after being broken and yesterday it held again during the decline. We decided to open a sell Oil signal as the price was falling, which closed in profit but the overall trend remains bullish.

US WTI Crude Oil Live Chart

 WTI