Although the weekly EIA data showed that crude oil inventories decreased by 1.4 million barrels for the week ending April 12, Crude oil prices struggled to gather momentum and the barrel of WTI could not close the day above the $64 per barrel. The data published by the IHS Markit showed that the business activity in the manufacturing sector continued to contract in Germany and the Eurozone, causing concerns over an economic performance weaker than initially expected in the euro area. The risk-off atmosphere weighed on the demand for commodities and pushed the prices lower. However, with the Joint Organisations Data Initiative (JODI) reporting that Saudi Arabia's crude oil exports in February dropped to 6.977 million provided a modest boost and helped the WTI retrace its daily fall.
Crude oil prices surged back up to the yearly highs around the $64.5 level after regaining traction which built up the momentum then retreated after failing to break above the $64.6 level in a repeated scenario. The price is currently trading just below the 64 level with a neutral momentum. We expect the prices to continue to fluctuate in its two-week-old $63.50 - $64.50 range as the volume will dry out.
Support: 64.07/ 63.43
Resistance: 64.48/ 64.83