WTI Oil Continues To Move Higher Ahead Of Inventories
Anna Coulling | May 06, 2015 08:04AM ET
It was another positive day yesterday for crude oil which continued its recent bullish momentum, moving firmly through the $60 per barrel price point to close at $60.40 per barrel on the daily oil chart. This positive sentiment for oil has continued on Globex overnight and into the morning session with oil prices trading higher again at $61.87 per barrel at the time of writing.
Yesterday’s move higher was accompanied by solid volume, confirming the price action which closed with a wide spread up candle while holding the platform of support which is now firmly in place below at $58.50. This has provided the springboard for the move higher. Whilst the technical picture remains bullish, the fundamentals too are now helping to take oil prices higher, with weakness in the US dollar, a slowdown in output from Libya coupled with news that Saudi Arabia has increased its official selling price. These factors are all providing additional momentum.
Today sees the release of the latest oil inventory stats from the Texas Cushing hub, with the forecast for another build, albeit modest by recent standards. Last week saw the downward trend in oversupply continue. Should we see this again later today, then oil is likely to move higher, building on the double bottom now in place on the weekly chart.
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