Crude oil prices edged higher on Wednesday as traders were optimistic on the unexpected drop in US production while data screening crude stockpiles dropped for the eighth-straight week boosting sentiment.
Inventories of U.S. crude fell by roughly 4.95 million barrels for the week ended Jan. 5, beating expectations for of a draw of 3.44 million barrels.
Gasoline inventories rose by 4.14 million barrels, well above expectations for a rise of 2.62 million barrels, while supplies of distillate rose by 4.3 million barrels.
Crude Oil 4Hr chart has formed “Rising channel” pattern. The trend remains consolidated as the last session seems have retested the channel’s resistance slope line. As per the technical aspects of the pattern, the retest is likely to turn the trend to bearish. The downside rally could test $63-62.50(4013-3981) levels in the upcoming sessions. Alternatively, if market breaks above the resistance level then it might continue in bullish trend. Resistance holds at $64(4076) and support at $62(3949).
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