WTI oil price jumped after data showed unexpected and sharp fall in US crude inventories which plunged 9.9 million barrels, following last week’s build of 4.3 million barrels and expectations for 0.4 million barrels rise.
Today’s report from the Energy Information follows late Tuesday’s release from American Petroleum Institute which also showed a significant draw in crude inventories (5.2 million barrels vs last week’s build of 2.5 million barrels).
Upbeat data improve the sentiment and partially offset the negative impact from persistent concerns about demand recovery, slowed by tightened restrictive measures on new wave of coronavirus infections.
Near-term action remains within a narrow range and capped by 200WMA ($53.24) that kept the upside attempts limited during past two weeks.
On the other side, limited dips and long lower shadows on daily candles of past few days, signal that bids are still strong, while the action mainly stays above 10DMA ($52.73) keeping near-term bias with bulls.
Daily and weekly studies maintain strong bullish momentum that underpins the action, but overbought weekly chart stochastic warns that bulls may struggle more to finally break 200WMA pivot and signal bullish continuation after two-week pause.
Rising 20DMA ($51.67) marks pivotal support, which is expected to hold extended dips and keep immediate focus shifted up.