EIA data halts US crude losses
The seasonal for US Crude are very strong with prices picking up from this month into April. If you need a reminder, check out Adam's post here.
Yesterday's headline inventory level showed a smaller than expected headline build of 1263K+ barrels vs+1850K expected. The Distillates showed a larger draw than expected at -2257K vs -2000K expected and the gasoline build was smaller then expected at +513K vs +1500k expected.
This data halted US Crude falls and this makes the 53 level a potential bottom. Looking at the US crude Daily chart the 50.00 level which is also a Pivot Point would look like a decent place to put a stop trying to play for higher prices up towards the 60 handle.
The following factors add some fundamental belief to a long US crude position.
- recent surprise product inventory draws,
- rig declines,
- sanctions on Venezuela
- Decline in OPEC production have placed a bid in crude markets.
The seasonal can add a little spring in your step and the technicals limit and define your risk.
