- WTI crude oil has shown a minor jump from the low hitting low of $49.75 after Russian Energy Minister said on Thursday that Moscow would support new countries joining the agreement to restrict oil supply. But upside is limited as inventories data came at weaker than expected.
- US EIA reported on Wednesday that crude oil inventories fell by 6 million bbls compared to forecast of decline of 7.56 million bbls. US Crude output also increased to 1.98 million bpd last week compared to 1.5 million bpd in previous week. The prices are supported by growing optimism on extension of supply cut by OPEC.
- US Oil has formed a temporary top around $52.83 and started to decline from that level. The commodity has broken 20 –day MA at $50.15 and declined till $49.75. But weakness can be seen only below $49 (55- day EMA).
- On the higher side, near term resistance is around $50.51 (2.6% fibo) and any break above will take the commodity to next level till $51.29 (daily Tenkan-Sen)/$51.97. Short term bullish continuation only above $52.83.
It is good to buy on dips around $49.75-$49.85 with SL around $49 for the SL around $50.50/$51.15.