Crude Oil on 12th October 2017, Crude Oil October futures down by (-51) pts (-1.52%) closed at 3296, trading range between 3264 – 3330. Crude oil for November delivery on the New York Mercantile Exchange settled at $ 50.60 a barrel.
Crude oil prices dipped lower on Thursday after a report Energy Information Administration (EIA) revealed from U.S. crude oil stockpiles dropped more than expected for the third-straight week while gasoline supplies enlarged. Inventories of U.S. crude dropped almost 2.8m barrels in the week ended Oct. whereas the expected was only 2m barrels.
The mixed report on inventories from the EIA came ahead of a monthly update from the International Agency Energy on Thursday suggesting that global demand for oil could come under pressure next year.
Crude Oil Price Analysis of October 13, 2017
The Crude oil market slid down at $50.14(3265) during the session initially on Wednesday, and then shot up to the $50.90(3300) level. There is enough support to turn things back around to rise significantly, and therefore it is likely to see Inverse Head and shoulder chart pattern with upside pressure. Breaking up neckline at $51.25(3340) level could lead towards 52-53 level and eventually towards $55(3550) level. Support holds at 50.14(3265) which is the right and shoulder. It is likely to continue with a Bullish pressure in this market, extending all the way towards $55(3550) level. The upward pressure could continue to weigh upon the market as it is a head and shoulder reversal pattern driven market.
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