WTI pares gains ahead of technical battleground
For the third consecutive day, the technical convergence of the January high and the 50% retracement has held off a rally in oil.
Crude got a lift from inventory data today. The build in oil supplies was near expectations but a surprise draw in gasoline supplies along with broad-based US dollar weakness put a quick bid into crude.
The high today was $38.19 but WTI has drifted back to $37.68.
So far USD/CAD remains near the extreme of the day but it could start to back-up. The selling hasn't only been about oil but also about the upbeat tone from the Bank of Canada.
