Oil Price Slips Despite Huge Withdrawal in Crude Inventory, Refinery Products Are Oversupplied. Crude oil inventory declined -3.66 mmb, more than market expectation of -2 mmb, to 350.2 mmb in the week ended June 26. Cushing stocks gained slightly after falling for 4 consecutive weeks.
Written by Oil N' Gold | Wed Jul 01 09 07:23 ET
Nymex Crude Oil (CL)
Crude oil failed to sustain above 73.23 high and retreated sharply again. With 4 hours MACD dragged below signal line, intraday bias is turned neutral for the moment. Nevertheless, another rise is still in favor as long as 68.45 support holds, and break of 73.23 will bring rally resumption, targeting 38.2% retracement of 147.27 to 33.2 at 76.77 next. However, a break below 68.45 will open up a few short term bearish case that should at least bring a retest of 66.25 support.
In the bigger picture, rise from 33.20 is still in progress and there is no confirmation that it's completed yet. Though, note that daily MACD's break of its up trend line provides a signal that such up trend is near to the end. Hence, we'd continue to monitor loss of up side momentum as crude oil approaches 38.2% retracement of 147.27 to 33.2 at 76.77. On the downside, break of 66.25 support will be an important indication that crude oil has topped out and will turn focus to 45.44/54.66 support zone for confirmation.
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