Thursday, February 28, 2019

USOIL - 28 February 2019


Fundamental Highlights

Crude oil prices surged during yesterday's session after the weekly report from US EIA registered a surprise drawdown in inventories. The stockpile declined 8.6 million barrels last week versus market consensus favoring 2.8 million barrels of addition. Additionally, OPEC members’ refusal to respect the US President Donald Trump’s comments demanding supply increase also helped support the upward move for the black gold's prices. On the other hand, the statements from the US trade representative Robert Lighthizer were downbeat; the statement seems pushing for the structural changes into the world’s second-largest economy, which in turn is less likely to be respected from the dragon nation and can cause a problem for the smooth running of a deal.

Technical Analysis

Crude prices surged during yesterday's session, climbing back above the $57 level. The price is currently in a correction mode as its holding just above the $56.69 level. The price seems to be heading for the $56.06 level for a retest before finding support, so this will be the level we will be focusing on.

Support: 56.69 / 56.06
Resistance: 57.32 / 58.02

Chart (H4)