EIA and API, Supporting the markets!
According to the Energy Information Administration's (EIA) published numbers, the Crude Oil Inventories fell by 7.355M barrels last week, almost 2M barrels more than a week before that, and 4M barrels more than expectations. Yesterday also, we had API numbers, and according to the American Petroleum Institute report, the private section's inventories fall over 8.5 million barrels for the week ending Jun. 11.
Crude Oil prices rose for the fifth consecutive day, and after the EIA report, this uptrend got more support to touch a new two-year high, just a few cents less than $73.
The oil market gained over 40% so far in 2021 as vaccination progress caused faster reopenings, and it helped the stronger recovery, which means more demand for the Oil market. And based on these excellent recoveries, IEA and OPEC both reported that more need would come up, especially in the second half of the year. And while we are entering into the summer, which traditionally means more flights. The aviation industry is one of the biggest Fuel consumers.
Even though these reports helped the energy market, investors' eyes will be on the FED announcement later today and the stock market reaction. Oil usually has a positive correlation with stock markets.
Crude Oil Technical analysis
As it is apparent in the below chart, Oil moves in a clear uptrend. Price moves above the OBV trend line, while MACD histograms above the zero-line and its Signal line, supporting the trend. Oil created three strong supports at $63.80, $66.00, and $68.50, and as long as it is trading above these levels, the current uptrend is confirmed. Any downtrend needs to be closed under the second support line at $66.00
