Yesterday’s EIA release of Crude Oil stocks must have been a bit of a surprise for most. The expected data was -2.075 million with a previous at -4.934 million and an actual of +2.386 million, quite a big variation. From the 1 HR chart we can see how the market reacted to the sharpe increase in supply with a large drop of around 150 pips. Looking at the day chart price action remained in a range between 57.62 and 61.30 for the past 9 weeks, and has now broken below the bottom channel line for the second day in a row. With no reduction of Crude Oil supply in sight I would see more downside action in the next weeks as this important support has been broken.
” alt=”” />