Plunging Supply Encourages Longs On WTI Crude
On Tuesday, WTI price moved up strongly after a preliminary report from the American Petroleum Institute (API) indicated that U.S crude inventories could have decreased by 4 million barrels for the week ended on June 24, and anticipated strong fuel demand ahead of the U.S. Independence Day holiday weekend. The U.S. Energy Information Administration is due to issue official stockpiles data on Wednesday, which is also expected to show a draw of 2.3 million barrels in store, last week.
Moreover, the commodity price received a positive boost as Venezuela’s oil production is believed to have slumped further due to power outages and equipment shortages. A looming strike by Norwegian oil has posed another big threat to output from the biggest North Sea producer.
On the hourly chart, the price is moving in a range between 48.40 and 48.62 today. The parabolic SAR is beneath the price chart, indicating that the commodity is in a bullish market. Additionally, ADX (14) is rocketing to 46.6282, along with DI+ staying above DI-, consolidating the uptrend. The price is anticipated to surge further.
Buy limit at 48.60, Take profit at 48.84, Stop loss at 48.50