Oil settles slightly higher despite US inventories build

By FXStreet Crude oil prices started the day with a strong footing, with WTI advancing up to $44.86 a barrel, but the commodity trimmed most of its daily gains after the US government reported that commercial stockpiles rose by 2.8 million barrels in the previous week, almost doubling market’s expectations.

West Texas Intermediate oil for June delivery settled or 0.3% higher at $43.78 a barrel.

WTI technical view

“The daily chart shows that the commodity managed to close the day a few cents above a now horizontal 20 SMA, whilst the Momentum indicator turned lower within positive territory, and the RSI indicator stands flat at 56, suggesting an increasing downward potential yet to be confirmed,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA heads strongly lower above the current level, capping the upside now around 44.60, while the technical indicators head nowhere within bearish territory, also supporting the need of additional confirmations before the bearish run begins.”

Support levels: 43.20 42.50 41.80. Resistance levels: 44.60 45.10 45.80.
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Source:: FX Street