Crude Oil Price Outlook Positive After Break Higher
Crude oil price, news and analysis:
- The price of US crude oil is looking increasingly positive, while Brent crude seems to be heading up to the $70 per barrel mark.
- The advances are particularly impressive given a report suggesting an unexpected increase in US inventories.
Crude oil price shrugs off inventory data
The outlook for the US crude oil price has improved further after a break above channel resistance discussed in this report Tuesday. As the chart below shows, the break came later Tuesday and the price has barely reacted to news of a surprise build in US inventories.
US Crude Oil Price Chart, Daily Timeframe (December 14, 2018 – April 3, 2019)
Chart by IG (You can click on it for a larger image)
The data from the American Petroleum Institute showed an increase of three million barrels in the week ending March 29 whereas the consensus among analysts was that they would fall by 425,00 barrels. The next data to watch will be the official Energy Information Administration figures due at 1430 GMT Wednesday.
As for Brent crude, the global benchmark, the price continues to edge towards the psychologically important $70/barrel level. It too suffered only a minor setback on the API statistics having previously advanced for five successive sessions.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.