WTI Crude Oil (current price: 45.30)
Oil had yet another bullish session, and it hit multi-month highs again, despite another unfavorable U.S. Crude Oil Inventories release. The 2.2 million barrel inventory build was outweighed by the reported decline in production, and the Black Gold broke above $45 for the first time since October, The momentum of the advance seems to be feeding in oil, and the crucial commodity is at the end of a narrowing bearish technical formation. If yesterday’s rally hold’s, oil could be headed to $49, but odds favor a retest of the 200-day MA, as momentum indicators remain overbought.
Our assessment: Oil moved higher after the FED yesterday, but today’s session might prove decisive for the commodity if the break-out fails to hold above $44.5.
