Oil prices climbed higher after the weekly DOE crude inventories fell by 46,000 barrels last week, the market consensus was for a decline of 2.5 million barrels. The reason oil prices edged higher on a smaller draw, was because yesterday, the weekly API oil inventories rose by 6.9 million barrels, up from a build of 3.5 million in the prior month.
The weekly Baker Hughes US rig count rose from 1,080 to 1,083. The US oil rig count also increased from 883 to 885. The gas rig count also ticked higher from 197 to 198.
The Canadian dollar still remains near its 19-month lows against the greenback and has yet to show a significant recovery along with oil prices.
Price action on the West Texas Intermediate (WTI) crude daily chart shows key low of $42.36 is still holding and price is in the middle of this week’s trading range. Volumes remain light and it is become less likely a major move will occur until the New Year. The $40 level remains critical support for WTI and it could happen if we see another major wave of risk aversion. To the upside, $48.00 could provide initial resistance.
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With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.
Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.
Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal.
Ed holds a BA in Economics from Rutgers University.