Oil Pushing Above at the 50 SMA After the Buildup in EIA Crude Inventories
Crude Oil has been bearish since the middle of April, with the global economy slowing down and heading toward a possible recession after numerous rate hikes by central banks all over the world. Although prices rose slightly today despite poor economic data from the US and China, as well as an unexpected rise in US crude oil inventories.
Yesterday, the market was not impressed by the retail sales and industrial production data from the US. Retail sales only increased by 1.6% last month, compared to 2.42% in the previous month. The industrial production data for April 2023 showed a growth of 0.24%, a significant drop from the 6.40% growth in April 2022. Additionally, the uncertainty surrounding the US debt ceiling increase also affected crude oil prices in the US.
US Weekly Oil Inventory Report for Last Week
- Crude oil inventories +5,040K vs -920K expected
- Prior week inventories were +2,951K
- Gasoline -1,381K vs -1,060K expected
- Distillates +80K vs +57K expected
- Refinery utilization +1.0% vs +0.5% exp
- Production estimate 12.2mbpd vs 12.3 mbpd prior
The API data released late yesterday showed:
- Crude +3690K
- Gasoline -2460K
- Distillates -886K
- Cushing +2870K
WTI crude Oil was trading higher by 75-cents to $71.61 ahead of the data but this is a bearish release and it slipped about 20 cents lower after that release. Although, buyers came back again and sent the price more than $1 higher. We had a sell Oil signal here which we opened on Monday after the retrace higher, but it’s not looking good after this jump.
US WTI Crude Oil Live Chart
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