Crude Oil Inventories Reach a Record High, Oil Prices Hit a 14-week Low
March 9, 2017 12:21 pm
The US EIA Crude Oil inventories (for the week ending March 3) released yesterday jumped to a record high of an 8.209-million rise, surpassing expectations of a 1.66-million increase and the previous reading of a 1.501 increase. Oil prices plunged on the release of the figure, spot WTI crude oil price broke the short term support levels at 52.00 and 51.00 respectively, hitting a 14-week low of 49.16. On the daily chart, the 10 SMA crossed over the 20 SMA from above, indicating the trend has turned bearish. On the 4 hourly chart, the price has been trading along the lower band of the Bollinger Band indicator, suggesting the current trend remains bearish. Although the OPEC is in an effort to cut production, the US shale oil industry has been thriving, which offsets the output reduction from OPEC to an extent. The current price is trading below the significant level at 50.00. The WTI bulls are attempting to recover the level. However, If the bulls fail to recover the level, we will likely see the bears push the price further down. The resistance level is at 50.00, followed by 50.50 and 51.00. The support line is at 49.40, followed by 49.00 and 48.50. The US non-farm payroll and unemployment rate will be released at 13:30 GMT on this Friday. Keep a close eye on it, as the readings will influence the probability of a rate hike at the upcoming March 14-15 FOMC meeting, the strength of the dollar, the dollar crosses and commodities. Source: FX Pro Market Snapshot
The US EIA Crude Oil inventories (for the week ending March 3) released yesterday jumped to a record high of an 8.209-million rise, surpassing expectations of a 1.66-million increase and the previous reading of a 1.501 increase. Oil prices plunged on the release of the figure, spot WTI crude oil price broke the short term support levels at 52.00 and 51.00 respectively, hitting a 14-week low of 49.16. On the daily chart, the 10 SMA crossed over the 20 SMA from above, indicating the trend has turned bearish. On the 4 hourly chart, the price has been trading along the lower band of the Bollinger Band indicator, suggesting the current trend remains bearish. Although the OPEC is in an effort to cut production, the US shale oil industry has been thriving, which offsets the output reduction from OPEC to an extent. The current price is trading below the significant level at 50.00. The WTI bulls are attempting to recover the level. However, If the bulls fail to recover the level, we will likely see the bears push the price further down. The resistance level is at 50.00, followed by 50.50 and 51.00. The support line is at 49.40, followed by 49.00 and 48.50. The US non-farm payroll and unemployment rate will be released at 13:30 GMT on this Friday. Keep a close eye on it, as the readings will influence the probability of a rate hike at the upcoming March 14-15 FOMC meeting, the strength of the dollar, the dollar crosses and commodities.
Source: FX Pro Market Snapshot
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