Crude oil back down after sharp crude drawdown price spike higher fails/reverses

Author: Greg Michalowski | Category: News

Back below the 100 and 200 hour MAs

The weekly crude oil data showed a huge drawdown of crude oil inventories of -12633K (vs -3788K estimate).  

The drawdown sent the price of crude oil higher, with the price reaching $74.04 (from the session lows of $72.60).  

However, the rise could not be sustained and the price of the contract has since moved back below the 100 and 200 hour MAs at $73.67 and $73.80 respectively. The price is back down trading at $72.76.  

The low from last week comes in at $73.07. That would be a target on more weakness. 

The EIA data today showed:
  • crude oil inventories -12633K vs -3788k est.
  • gasoline inventories showed a drawdown of -694K vs estimate of -1000K
  • Cushing inventories showed a drawdown of -2062K vs -2113K last week
  • Distillates inventories 4125K vs 1000K estimate
  • refinery utilization -0.40% vs estimate +0.10%
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