Published on 16/03/2017 10:34:05 AM | Source: Enrich Commodities India Pvt Ltd
Buy Crude oil dips on 3190-3200 target 3240-3300 stop loss at 3150 - Enrich Commodities
Crude Oil on Wednesday 15th March 2017, Crude Oil March futures prices up by 42 pts (1.34%) closed at 3178, trading range between 3150-3211.On the New York, Mercantile Exchange, Crude oil for February delivery on the New York Mercantile Exchange to settle at $48.86 a barrel.
Crude prices rose on Wednesday after hitting a 3-1/2-month low yesterday, following earlier EIA data that showed a surprise U.S. inventory drawdown that failed nonetheless to prop up prices.
U.S. crude inventories fell by 240,000 barrels by the end of last week, the U.S. energy Information Administration (EIA) said Wednesday, compared to an expected 3.2 million barrels gain.
Gasoline inventories fell by 3.1 million barrels, while distillates dropped 4.2 million barrels, compared with declines of 1.98 million barrels and 1.5 million barrels respectively.
Overall, crude inventories at 528.2 million barrels are 7.3% higher than year-ago levels, and the storage hub at Cushing, Oklahoma, recorded a build of 2.13 million barrels.
U.S. inventory drawdown failed however to underpin prices as the inventory drop was too small and doesn’t indicate any actual easing of U.S. supplies, especially after stockpiles reached several record highs recently.
Elsewhere, Saudi Arabias energy ministry said Wednesday the amount of crude that reached the market in February was 9.90 million barrels a day (bpd), down from 9.99 million bpd in January, as it moved to explain figures that showed it pumped 10.011 million bpd in the month.
Crude Oil market closed, as per our technical view market arriving to the end of this daily in slope support line at 3100 level, prices slices through the 200-day expositional moving average which is former support become resistance seen 3320 are poised to test resistance near the 200-day moving average at 3315 The RSI (relative strength index) has moved higher with price action reflecting accelerating positive momentum. Earlier in the session the RSI was in oversold territory but has climbed out and is now printing a reading of 28, which also reflects upside momentum as we broke below the bottom of the yesterday candle low at 3100 then again reaching towards the 3000 level, and then eventually the 2960 level.
If crude oil daily candle close above 3225 level, then market will recovery up to 3315 in next trading session.
Today Research Reports call:
Crude oil Buy dips on 3190-3200 target 3240-3300 stop loss at 3150.
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