November Crude Oil tested the $50 resistance level Wednesday, October 5, 2016, reaching 49.97 as the EIA report showed crude oil inventories declining. Crude oil inventories declined 2.976 million barrels which is lower than the expected build of 1.5 million barrels and confirming the larger API report’s drawdown (drawdown of 7.6 million barrels) from Tuesday.
Crude Oil pulled back slightly from the high and settled at 49.83. It drifted after settlement and ended the day at 49.70.
The EIA report showed inventories from Cushing, Oklahoma increasing by 569,000 barrels, larger than the 100,000 build expected. Gasoline inventories rose by only 222,000 barrels, smaller than the 500,000 barrels expected. Distillates fell 1.915 million barrels. US production declined by 30,000 barrels per day to 8.467 million b/d.
Resistance is at 50.00, 50.54 and a break above the trendline at 50.76 could lead to a test of the June high at 51.67. Support levels are at 48.55, 48.13, 47.03, 46.44 and 45.81.
- High 49.97
- Low 49.10
- Last 49.70
Daily Pivot Points for 10/6/16
- R2 50.46
- R1 50.08
- PIVOT 49.59
- S1 49.21
- S2 48.72