WTI Crude Oil (current price: $45.45)
Oil surged back above the all-important $46.50 level on Tuesday but fell sharply yesterday on the weak Chinese trade data, and the bearish U.S. Crude inventories data. U.S. oil stocks declined by 2.5 million barrels, but distillates increased by the most in six months, and that pushed the crucial commodity towards the $45 level. The fundamental picture is still mixed, as production is shrinking but global growth is also slowing down, negatively affecting demand.
Our assessment: Oil is still in a bullish flag consolidation that developed after it hit a high near $52 in June. Short-term resistance is at $47.75 while support is found at $44, as the momentum indicators are back to neutral territory.
