USOIL, Daily
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.
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Andria Pichidi
Market Analyst
HotForex
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