WTI crude oil breaks above ceiling area
The price of WTI crude oil futures broke higher today, and in the process, moved above a key swing area ceiling between $82.43 and $83.44 (see red numbered circles). That ceiling was started way back in November 2022. The high price extended up to $84.65. The low today was at $82.67. The settlement was at $84.40, up $1.48 or 1.78%
the gains came despite a larger than expected build-in inventories of 5.851 million versus expectations of 0.567M. Of course that came after a record drawdown last week of -17.04M barrels. Gasoline stocks saw a drawdown of -2.661M which was larger than the -0.008M estimate. Distillates were also lower with a drawdown of -1.706M with an expected build of 0.006M
- Looking at the daily chart, the next major target comes against the 38.2% retracement at $86.58. It will now take a move back below the low of the swing area ceiling at $82.43 to hurt the buyer’s bias advantage.