Oil remains bid after inventories post small decline

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.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023.

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. Prior to OANDA 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, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal.

Ed holds a BA in Economics from Rutgers University.