Crude oil prices jumped during the European session to fresh 2-week highs, with WTI futures rising up to $31.95 a barrel, boosted by the API report released late Wednesday, which showed crude oil inventories fell by 3.3 million barrels in the previous week. Also supporting the commodity was Iran's endorsement to the output freeze proposed by other major producers.
But the black gold fell down to the $30.50 region after the EIA released its weekly crude oil inventory, showing an increase of 2.1 million barrels last week, while stockpiles reached their highest in over 84 years. The worldwide glut continues, which means the risk in price will remain towards the downside. However WTI futures managed to settle slightly higher on NYMEX, up 0.4% at $30.77 a barrel.
WTI technical perspective
"Technically, WTI holds onto gains weekly basis, but the daily chart shows that the price is now battling to hold above a horizontal 20 SMA, while the technical indicator s have lost upward strength around their mid-lines, and the RSI indicator already turned south, in line with further declines", said Valeria Bednarik, chief analyst at FXStreet. "In the shorter term, the 4 hours chart the price is holding above a bullish 20 SMA, currently around 30.10, the immediate support, while the RSI indicator heads lower from overbought level and the Momentum indicator aims slightly higher above its 100 level, lacking enough strength to confirm a directional move".
Support levels: 30.10 29.40 28.60. Resistance levels: 30.80 31.50 32.10.