Oil gains more than 4% despite inventories report
By FXStreet FXStreet (Córdoba) – Crude oil prices rebounded from a 12-year lows scored on Wednesday, with West Texas Intermediate crude futures reaching a daily high of $30.23 before pulling back to settle at $29.53 a barrel, up 4.2% on the day.
Meanwhile, Brent for March delivery gained 4.9% to $29.25 a barrel on the London-based ICE Futures Europe exchange.
The comeback of the crude prices was attributed to oversold conditions and wasn’t even tempered by a reported increase in US oil stockpiles. According to the latest EIA report, US inventories grew by 3.98 million barrels last week, against expectations of a 2.6 million increase.
WTI technical view
“Considering the extreme oversold conditions, the movement seems so far corrective, and recent lows may become an interim bottom, should the rally extend. But so far, the technical picture is far from confirming the downward potential is over, as in the 4 hours chart, the technical indicators are merely aiming higher in oversold territory, whilst the price remains far below its moving averages”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, and according to the 4 hours chart, the price is aiming to extend above a bearish 20 SMA, while the technical indicators head …read more
Source:: FX Street
