Oil prices settled higher on Wednesday and trade stable on Thursday, supported by healthy global demand but limited by the persistent rise in U.S. production that is deteriorating efforts led by producer cartel OPEC to cut supplies and support markets.
Prices were receiving support from healthy demand. The Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday that oil consumption was expected to grow by 1.62 million barrels per day (bpd) in 2018.
But alarming over markets has been an unyielding climb in U.S. crude output, which hit another record last week by rising to 10.38 million bpd, up by more than 23 percent since mid-2016. Commercial crude inventories were up by 5 million barrels, at 430.93 million barrels.
Crude Oil hourly chart has formed "Falling wedge” pattern. The last session ended up bullish after retesting a key support holding at $60(3896). As per the technical aspects of the pattern, the market is expected to continue in bullish for a while to retest a key resistance holding at $61.50(3993) and then turn bearish once again. The downside rally could test $60.50-60(3928-3896) Alternatively, if the market breaks above the resistance level then it might turn bullish.
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