Up $1.90 or 3.44%
The price of crude oil futures are settling at $7.11. That is up $1.90 or 3.44% on the day. The high price reached $57.25 while the low extended all the way down to $54.76.
The catalyst for the move was a lesson expected build in crude oil inventories of 1379K versus 1500K. The private API data from yesterday was much higher at 5954K. As a result, traders were forced to cover shorts in anticipation of a similar build.
The run higher did, however, stall just ahead of its 200 day moving average at $57.36.
Recall that prior to yesterday, the price of crude oil had trade above and below the 200 day moving average for 11 consecutive days, with limited upside momentum. The swing high over those 11 days was at $58.08 on Monday.
Yesterday the price not only stay below the 200 day moving average, but also fell below its 100 day moving average (and closed below that level). Needless to say, with the move back higher today that breaks failed.
Going forward, a move above the 200 day moving average would be more bullish. However, traders would be looking at the break with a cautious eye (given the 11 other stalled rallies above the MA level).
