Crude Oil Approaches $50 Level After Stockpiles Drop

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Written By: Kevin George

Dec 17, 2020, 08:55 GMT 08:55

oil prices

Summary:

Crude oil was trading higher at $48.40 and is heading for the $50.00 level. Prices were boosted by the latest EIA inventories which showed a stockpile draw.

Crude oil was trading higher at $48.40 and is heading for the $50.00 level, which was last seen in February. Prices were boosted by the latest EIA inventories which showed a stockpile draw.

U.S. crude oil stocks fell by 3.1 million barrels in the week to December 11th after analysts had forecast a 1.9-million-barrel drop. The draw was welcome after a big increase in the previous week had investors worried about the effects of the current lockdowns on demand.

Oil prices have been supported by the dual effects of another U.S. stimulus package. The expectations for a deal are boosting economic growth and energy demand hopes, while it is also creating a continued decline in the U.S. dollar.

Crude Oil Technical Outlook

Crude oil is pressing higher with the $50.00 level being a target. It’s possible that we see a push to test that level this week. We are now moving away from support which lies at $45.00 and 43.50. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.

Crude Oil Daily Chart

Written By: Kevin George

Kevin George has over twelve years' experience in financial markets trading, which included stints in London and New York, trading equities and currencies. He has also traded in commodities, equities, futures and options. He has extensive technical-experience and combines this with a fundamental overview. He has published for SeekingAlpha, where he runs his own subscriber newsletter and graduated with an MSc in finance in 2017.