Crude oil prices retraced part of their daily gains but ended higher, with West Texas Intermediate futures trading up 0.8% around $34.60 a barrel after being as high as $35.17.
The commodity was hurt by US stockpiles reports as the EIA said that crude inventories rose by 10.4 million barrels to a total of 518 million barrels, almost three times the 3.6 million-barrel increase expected by analysts. Late Tuesday, the American Petroleum Institute also said that crude inventories jumped by 9.9 million barrels last week.
The record reading however, was offset by new evidence that worldwide production continues to decline, whilst Venezuela’s Oil Minister Eulogio Del Pino said that several oil producing countries will meet to discuss an output freeze plan and possible further actions, to fight the glut and falling prices.
WTI technical view
“Daily basis, the commodity set a higher high, approaching further to its 100 SMA, still bearish around 35.80, the immediate resistance. In the same chart, the Momentum indicator has turned sharply lower, but the RSI indicator maintains its bullish slope around 59, supporting an extension of the latest recovery,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has steadily found buying interest on decline towards its 20 SMA, whilst the technical indicators have lost upward momentum, but remain within positive territory in line with the longer term outlook.”
Support levels: 34.00 33.35 32.55. Resistance levels: 34.90 35.80 36.60.
(Market News Provided by FXstreet)