WTI Crude Oil (current price: 46.82)
Oil got back to its recent highs near $47, following a surprise inventory draw in the U.S. that was likely caused by the Canadian wildfires, which disrupted production in the neighboring country. The output in the U.S. also declined for the sixth week in a row, and that helped the crucial commodity in rising more than $1.4 during the session. A break above the $47.50 level could lead to a test of the $49.25 resistance, but the still overbought indicators should make traders cautious for the time being.
Our assessment: Oil consolidated for more than a week, and the support zone near $44 proved to be enough to hold back the correction, as the commodity stayed surprisingly strong in the face of negative fundamentals.
