Oil Recovers On Draghi Comments, API Report
Benedetto DiCostanzo | Jun 29, 2016 01:36AM ET
Equity and currency markets settled down on Tuesday as comments by Mario Draghi calling for Central Banks to “align polices on a shared diagnosis of the root causes of the challenges that affect us all” were interpreted as a call for more easing by the Central Banks. This resulted in a strong recovery in August Crude Oil off of Monday’s lows. The rally in Crude formed a bullish engulfing candle on the daily chart and could lead to a test of resistance at the 13 DMA at 48.35 and then the 21DMA at 48.88.
Traders were also expecting a bullish inventory report from the American Petroleum Institute (API). The API report didn’t disappoint as it showed inventories shrinking by 3.86 million barrels, more than the expected decline of 2.5 million barrels.
Inventory levels in Cushing, Oklahoma declined by 1.207 million barrels and gasoline inventories declined by 416,000 barrels. We get the EIA take on inventories on Wednesday morning at 9:30 AM CT. The last few EIA reports negated the API numbers.
- High 48.18
- Low 46.54
- Last 48.11
Daily Pivots for 6/29/16:
- R2 49.25
- R1 48.68
- PIVOT 47.61
- S1 47.04
- S2 45.97
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.