Oil Up, U.S. Crude Oil Supplies Drop to Lowest Level Since January 2020

Brent Oil was trading 0.47% up at  $74.22.

 Oil was up Thursday morning in Asia as the latest data showed a draw in U.S. crude oil supplies to their lowest level since January 2020.

Brent Oil Futures were up 0.34% to $74.12 by 11:43 PM ET (3:43 AM GMT) and WTI Futures gained 0.37% to $72.66. Brent and WTI futures both remained above the $70 mark.

The EIA data showed a bigger-than-expected 2.253-million-barrel draw in gasoline inventories , bringing them largely in line with pre-COVID-19 levels. However, fuel demand continues to be of concern for investors as gasoline demand in the U.S. and Europe beginning to fall.

It is widely expected that fuel demand will likely not recover to its pre-COVID-19 levels until 2022 should the number of COVID-19 cases continue to increase, and the vaccination rate continues to slow down.

“There appears to be quite a bit of hesitancy to push the market in either direction, leaving it in a holding pattern… there is still uncertainty over the demand picture, with COVID-19 cases continuing to tick higher,” ING Groep  NV head of commodities strategy Warren Patterson told Bloomberg.

On the technical front Brent Oil , RSI Stood at 52.598, the current price is trading  Above  the Moving Averages 20 & 50 . So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL- Brent Oil– BUY: 73.80, TARGET:-83.80, STOP LOSS:- 68.80.

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