Crude Oil Price Chart - Daily Oil Prices WTI 18th June 2009
The oil market took some time to respond to yesterday’s EIA stats which could, at best, be described as a mixed bag with a larger than expected draw in crude inventories signalling rising demand but with a much larger than expected build in gasoline stocks. The effect on the price of crude was to lift oil prices which in early trading had dropped below the significant $70 per barrel price point to an intra day low of $69.71 but prices recovered, assisted by a weaker dollar, to settle eventually at $70.55. From a technical perspective yesterday’s candle reinforced our view once again that the 9 and 14 day moving averages will set the tone for oil prices in the near term, as it is evident from the last few days that these are providing a consistent barrier to any reversal lower in daily oil prices, and we saw this once again in yesterday’s price action. This view has been reinforced in early trading this morning with a gapped up open and the low of the session currently finding support at the 9 day moving average. Provided we see a break and hold above the $73 per barrel price then we should still be on track to achieve our initial target of $75 per barrel, with the proviso that the three moving averages continue to offer this level of support.
The short, medium and long term are bullish.
WTI:
Support: $69.71 (yesterday’s low) Resistance: $73.42 (high of 16/06/09)
Support: $69.37 (low of 09/06/09) Resistance: $72.97 (high of 15/06/09)
Support: $68.40 (low of 05/06/09) Resistance: $72.00 (yesterday’s high)
OIL (BRENT):
Support: $69.02 (yesterday’s low) Resistance: $72.40 (high of 16/06/09)
Support: $68.56 (low of 15/06/09) Resistance: $71.64 (high of 12/06/09)
Support: $67.35 (low of 05/06/09) Resistance: $71.12 (yesterday’s high)
DOE Stock Figures (change in millions of barrels)
Crude -3.4 (-1.7) Distillates +0.3 (+0.8) Gasoline +3.3 (+0.3)
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