Crude Oil on Wednesday 8th Feb 2017, Crude Oil Feb futures prices up by 14 pts (0.40%) closed at 3514, trading range between 3456-3532.On the New York, Mercantile Exchange, Crude oil for February delivery on the New York Mercantile Exchange to settle at $52.34 a barrel.
Crude inventories were up 13.8 million barrels in the week to Feb. 3, compared with expectations for an increase of 2.5 million barrels. Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 1.143 million barrels last week, the EIA said. Total U.S. crude oil inventories stood at 508.6 million barrels as of last week, according to press release, which the EIA considered to be “near the upper limit of the average range for this time of year”.
Crude imports jumped, rising 1.1 million barrels per day, with a big increase in imports at the Gulf Coast, where crude stocks rose by 10.9 million barrels, the largest weekly rise on record, to 267.6 million barrels.
However, the report also showed that gasoline inventories decreased by 0.869 million barrels, compared to expectations for a build of 1.071 million barrels, while distillate stockpiles grew by only 0.029 million barrels, compared to forecasts for a gain of 0.300 million.
Crude prices rose on Wednesday just above a four-week low hit earlier, after official data showed a more-than-expected rise in U.S. crude stocks, while traders await the official report from the Energy Information Administration.
Meanwhile the OPEC led production cuts could have affected demand drastically in the past; the reality is that things have changed. In fact, by cutting production, OPEC may have played into the hands of North American producers as oil prices raised, making shale a profitable venture
Traders should look for volatility with the release of the U.S. Energy Information Administration’s weekly inventories report. It is expected to show a build of 2.7 million.
TODAY CRUDE OIL TECHNICAL OUTLOOK :
Crude oil prices rebounded into the close, And Technically Crude oil daily chart formed” Triple Bottom Chart Pattern” in this pattern used predict the reversal of a prolonged downtrend. Because crude oil price closed third low of trend line at nearly the same price level at 3470. The third bounce off the support is an indication that buying interest (demand) is outweighing selling interest (supply) and that the trend is in the process of reversing once break above 3550 level.
Yesterday crude oil market has punched low nearly Fibonacci retracement level 38.2% at 3450. We said previous reports as might be bounce back possible in retracement place. so, it’s purely reacted yesterday market. In further break below pr evious low that’s third trendline low again selling pressure meet Fibonacci retracement at 50% at 3326. Crude Oil above green dotted line is resistance at 3650 below red dotted trend line is support at 3450.
RESULT >> BUY CRUDE ON DIPS PRICE AROUND 3515 – 3520 FOR Target Level 3550 – 3585