Up $0.48 or 1.3%
The price of WTI crude oil futures is settling the day at $37.29. That’s up $0.48 or 1.3%. The high for the day extended to $38.18. The low for the day was at $35.88.
Next week OPEC will be getting together and discussing the future of production cuts. It is understood that Saudi and Russia are aligned to extend the production cuts of 9.7 million barrels per day for one month. However, Iraq must comply with those cuts.
The DOE inventory data today was mixed with crude oil inventories showing a surprise drawdown of -2.07 million barrels vs. +3.0 million build estimate. However gasoline inventories showed a larger than expected build of 2.79 million vs. 0.3 million estimate. Distillates also showed a much larger than expected build of 9.93 million vs. 2.9 million estimate.
Technically, looking at the daily chart above, the high price today was able to extend briefly above its 100 day moving average at $37.82 (blue line in the chart above). However, the closing price is back below that moving average level.
Going forward it will take a move back above the 100 day moving average (and staying above) to increase the bullish bias. On a break higher, the next upside target comes in at $40.11. That is the 50% retracement of the July contract move down from the January high to the April low.
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