Crude Oil: Oil trading on a weaker footing, ahead of EIA’s weekly crude oil inventories data

Crude Oil

Crude Oil Movement

For the 24 hours to 23:00 GMT, Crude Oil surged 2.65% against the USD and closed at USD63.50 per barrel, following a bigger-than-expected fall in the US crude oil inventories.

The American Petroleum Institute (API) reported that US crude oil stockpiles sharply fell by 11.2 million barrels to 416.6 million barrels in the week ended 05 January.

Meanwhile, the Energy Information Administration (EIA) forecasted that US crude oil production would surpass 10.0 million barrels per day (bpd) this year and would continue to rise next year to hit 11 million bpd. Further, the agency also predicted strong increases in oil demand this year.

In the Asian session, at GMT0400, the pair is trading at 63.46, with oil trading 0.06% lower against the USD from yesterday’s close.

The pair is expected to find support at 62.33, and a fall through could take it to the next support level of 61.2. The pair is expected to find its first resistance at 64.06, and a rise through could take it to the next resistance level of 64.66.

Crude oil is trading above its 20 Hr and 50 Hr moving averages.

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