EIA report encouraging the bears!

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Crude Oil analysis – 12 March 2020

By: Ahura Chalki

The Energy Information Administration’s (EIA) had its weekly report for the change in the number of barrels of commercial crude oil held by US firms. The report clearly confirmed the hug raising in the inventories by 7.664 M barrels, comparing the forecast of 2.266M. While in an interview with Reuters late Wednesday, Pavel Sorokin, Russia’s Deputy Energy Minister, said that deeper oil output cuts don’t make sense, as there is a lack of clarity on the impact of the coronavirus outbreak on the demand for oil, we cannot bet on any reason to see the increasing of prices in the near short term.

For now, fundamental research and news, clearly supporting the bears, as all stock exchanges, all over the world trading in the red and the governments and central banks act also could not change the market sentiment.

WTI technical analysis:

In the daily chart, technical indicators also clearly supporting the bears, 27.60, the Monday low is the next target for bears, while in the return, bulls can get the control back, if price can breathe above 20 DMA, at $46.

Pivot point: 34.03

Resistance levels: 35.24 / 37.81

Support levels: 31.46 / 30.25

Today, the expected trading range is between 30.25 support and 35.24 resistance.


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