Crude oil price has held Tuesday’s gains after data from the American Petroleum Institute (API) showed a higher-than-expected draw. Late on Tuesday, the institute indicated that oil stockpiled dropped by 3.67 million barrels for the week that ended on 17th December.
Analysts had predicted a draw of 2.633 million compared to the 815,000-barrel draw recorded in the previous week. Investors now await inventory data from EIA later on Wednesday.
WTI futures have eased above 71.00 after surging in the previous session. At the beginning of the week, it hit an intraday low of 66.17 before rebounding. At the time of writing, crude oil price was up by 0.02% at 71.28.
On a four-hour chart, it is trading above the 25 and 50-day exponential moving averages. High volatility will likely continue to define the oil market in the ensuing sessions amid the ongoing coronavirus-related concerns. However, I hold a bullish bias on the commodity.
In the short term, the range between the support level at 69.34 and the resistance zone of 73 will be one to look out for. With increased demand confidence, a move above the range’s upper border will give the bull an opportunity to push crude oil price to 75. On the flip side, a pullback below the lower border will likely place the support zone at 68.
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