The United States West Texas Intermediate crude oil futures are trading marginally higher following the release of the United States Energy Information Administration’s (EIA) weekly inventories report. The market is also trading inside yesterday’s broad range, which intimate’s investor indecision and impending volatility.
At 14:30 GMT, the EIA report showed a 3.1-million-barrel drawdown. This was somewhat above the 3.6-million-barrel drawdown estimate.
Prices plunged on Tuesday after U.S. government officers said Iran is open to talks over their nuclear missile program. The news encourages speculators who had a wager on a to provide disruption within the Middle East to aggressive liquidate their long positions.
At 14:36 GMT, September WTI crude oil futures are buying and selling $58.12, up to $0.38 or +0.66%.
The main pattern is up according to each day swing chart. However, momentum has been trending decrease because of the formation of the closing worth reversal prime at $61.02 on July 11.
Commerce through $61.02 will negate the closing value reversal prime and sign a resumption of the uptrend. The principle trend will change to down on commerce by way of $56.13.
The quick-term vary is $56.13 to $61.02. The market is currently testing its retracement zone at $58.58 to $58.00.
The market can also be buying and selling on the weak facet of an extended-time period retracement zone at $58.41 to $60.18.
If the main development changes to down, then search for a break into the intermediate retracement zone at $55.62 to $54.50. Everything is coming up bearish this week. No hurricane. An easing of tensions in the Center East. They are rising U.S. shale production. The market may be ripe for some massive hedge fund liquidation.