- There was a slow and steady increase in Crude Oil Prices above $51 against the US Dollar.
- There is a monster bullish trend line with support at $51.20 formed on the hourly chart.
- In the US, the EIA Crude Oil stockpiles report (May 19, 2017) released by the Energy Information Administration posted -4.432M, better than the forecast of -2.419M.
Oil Price Technical Analysis
In the last analysis, we analyzed that if oil price stays above $51.00-51.10, there can be a bounce back towards $51.50 against the US Dollar.
The price did rise, traded higher, and currently positioned well above the $51.00 level.
There was a dip recently from $51.60 to $50.70, but the price found support and gained traction. It is now back above $51 and the 50% Fib retracement level of the last decline from the $51.59 high to $50.75 low.
In fact, the price is trading near the $51.59 swing high, and may soon break it.
Oil Price Hourly Chart
A break above $51.60 may open the doors for a move towards the 1.26 extension of the last decline from the $51.59 high to $50.75 low.
In the best case, $52.11, which is the 1.618 extension of the last decline from the $51.59 high to $50.75 low could be tested.
On the downside, there is a monster bullish trend line with support at $51.20 formed on the hourly chart. So, buying dips remain a good option near $51.20.
EIA Crude Oil Stockpiles
Recently in the US, the EIA Crude Oil stockpiles report (May 19, 2017) was released by the Energy Information Administration. The market was expecting the change in the number of barrels in stock of crude oil and it’s derivate to be -2.419M, compared with the last -1.753M.
The actual result was better than the forecast, as the change was -4.432M. Looking at the U.S. crude oil imports, it averaged 8.3 million barrels per day last week, which is 296,000 barrels less from the previous week.
The report added that:
U.S. crude oil refinery inputs averaged 17.3 million barrels per day during the week ending May 19, 2017, 159,000 barrels per day more than the previous week’s average. Refineries operated at 93.5% of their operable capacity last week.
Overall, it looks like oil price may gain further, and it only a matter of time when it reaches $52 versus the US Dollar.