The price of the barrel of WTI gained traction yesterday after the weekly data released by the American Petroleum Institute revealed a surprise draw in crude oil inventories in the US. Crude inventories decreased by 2.1 million barrels to 408.5 million in the week ending October 12 according to API. In addition to that, Reuters reported that Mohammed Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries, said that India was projected to see the largest additional oil demand and the fastest growth in the period to 2040. He also thinks that the market is relatively balanced at the moment and until 2019, however, he also added that there is the potential for an imbalance, due to larger growth in supply. Geopolitical tensions are still escalating which threatens the Saudi oil supply.
Oil prices broke above the $72 level and they are just hovering above it at the moment. On this 4H chart we can see a build up in the momentum on the RSI chart with a bit of divergences pointing towards a bullish move. After failing to break also to the downside, we will still be focusing on the $73.3 resistance level.
Support: 73 72.73
Resistance: 73.5 74.25