US Oil broke higher today, after yesterday’s decline, down to $53.37. The market has so far remained shy of yesterday’s peak at $54.60 and Tuesday’s six-week peak at $54.68. Hence crude prices are up 1.4% at $54.34, breaking the $54.00 resistance level since December 2016 and presenting a support level this week at 53.85-75. American Petroleum Institute (API) data, released last night, showed a 884k barrel drop in U.S. crude inventories in the latest reporting week versus a forecast for a 3.4 mln barrel increase. Furthermore, ExxonMobil reported that its reserves declined by nearly 20% last year, which is apparently the biggest decline in reserves at a major international oil company in at least a decade, as stated by the Financial Times.
Today, the official EIA data will be published, which will help to ascertain a clearer view on whether broadly sideways movement around $53.00, seen since early January, will not remain in play. Hence a combination of API data and confirmed EIA’s data might indicate gains for oil.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.
Click HERE to register the next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.