Have the Bulls Regained an Edge in Crude?Crude Oil (September)
Yesterday’s close: Settled at 75.23, up 2.03
Price action in WTI Crude Oil Futures settled at the 75.12-75.27 resistance pocket, which now stands as our Pivot and point of balance. We may have seen a shift favoring the bulls in the near term as long as price action can build a floor at the 74.45-74.60 mark. However, if support is surrendered at 73.96, it will signal the early signs of failure.
Key takeaways from yesterday’s EIA Crude Oil Inventory Report from Bloomberg:
US crude inventories fell for the sixth consecutive week, reaching the lowest since February. The six straight weeks of decline is the longest streak since January 2022. The nationwide decline of 3.73 million barrels takes stocks to around 429 million. Crude inventories at Cushing rose to 30.429 million, a weekly gain of 579,000 that was the largest increase since May 31.
Distillate inventories rose above the seasonal average of the past three years, while gasoline inventories rose even as imports fell along the East Coast. Jet fuel inventories recorded their largest draw in nearly four months at 1.1 million barrels, after soaring to a 14-year seasonal high over the last four weeks. Gasoline demand fell for a second straight week. On a four-week basis, gasoline demand ticked lower to 9.114 million barrels a day. Refinery utilization was at 90.5%, a slight improvement from last week. Still, utilization is at the lowest since the pandemic on a seasonal basis. One other nugget from imports data was that flows from Ecuador jumped to the highest this year, somewhat helping to make up Latin American imports after the drop from Mexico that Lucia noted.
Bias: Neutral/Bullish
Resistance: 76.12-76.40***, 76.87**, 77.62***
Pivot: 75.12-75.27
Support: 74.45-74.60**, 73.96**, 73.46-73.56**, 72.74-72.94***, 72.23-72.42***, 70.703**, 70.00***
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