the daily chartist

WTI Crude Oil recap for 15.09.2015

published 6 years ago
WTI Daily

 Crude is still in a correction zone trading from 39.51 to 48.58 and currently supported from the production cut outlook from the Middle East. Lets note that the price finds renewed support at the levels from 18.03.2015 and 29.01.2015 as historical bottoms. This was a double-bottom configuration back then and it did played out very well. Today we have Crude Oil Inventories coming up and expectations are that they will drop at 0.7 M barrels from the previous 2.6 M barrels. For a positive move in Oil we must have in mind the fact that US has decline in shale output and last week the American Petroleum Institute reported a 3.1 million barrels drop in inventories. Also White House withdrew its support for House bill to lift ban on US crude exports, effectively prolong the US supply glut. Currently, US shale oil can only be sold to Canada and in a much lesser extend to Mexico. We will see today's report how will come up. On the downside - 44.34 is a support if it brakes from the volatility ahead the price may free fall to 39.51 again and if it supported by the glut from shortage of barrels, the price may again go up to 48.58. From there, if supported by the strong demand and lesser over-supply from the Middle East, US and shale output continues to decline, we may see Crude going up to 52.82.