Oil Climbs Back Above $45.00 Level
WTI crude oil prices got a boost on Thursday from a raging wildfire in Alberta, lifting the commodity back above $45.00 handle.
of
late, the black gold had been witnessing some selling pressure on
renewed fears of oversupply. The fear got accentuated on Wednesday after
the EIA report showed a larger-than-expected rise in crude oil
inventories. For the week ended April 29. During the week, crude oil
stockpiles rose by 2.8 million barrels against an expected rise of 0.6
million barrels.
Crude oil prices however, recovered from
Wednesday's low of $43.20 and extended its recovery on Thursday to move
back above $45.00/barrel mark on news of the Canadian wildfires. The
commodity has now moved back above an important resistance near
$44.30-40 area, marking 61.8% Fibonacci expansion level of $27.73-$42.46
upswing and subsequent retracement. A strong follow-through buying
interest would continue supporting further near-term up-move for the
commodity.
Technical levels to watch
A
sustained trade above $45.00 mark, would mark resumption of the
commodity’s previous up-trend, and the commodity might make a fresh
attempt to move back towards April daily closing high level resistance
near $45.95-$46.00 round figure mark.
On the downside, $44.00
round figure mark now seems to have emerged as immediate support.
Weakness back below this handle would confirm that crude oil prices have
formed a near-term top near $46.75, thus making it vulnerable to
near-term corrective move towards $42.50-40 strong support area.