Oil shrugs off inventory data and settles above $46.00

By FXStreet FXStreet (Córdoba) – Crude oil prices fell at the beginning of the journey, but bounced in the American afternoon shrugging off inventories data, with WTI ending the day above $ 46.00 a barrel after being as low as $43.20 intraday.

The US Energy Information Administration said that US commercial stockpiles had increased by 4.7M barrels to 455.4M barrels in the week ending August 28 as refineries processed less crude and imports rose.

Oil technical perspective

The daily recovery suggest decreasing selling interest and may indicate a technical interim bottom in the commodity, yet to be confirmed, according to Valeria Bednarik, chief analyst at FXStreet.

“Daily basis, the black gold has recovered its upward momentum, as the technical indicators bounced sharply from their mid-lines, and maintain their upward strength, whilst the 20 SMA remains flat around 42.60”, said Bednarik. “In the 4 hours chart the price has managed to recover above its 20 SMA that anyway lacks upward strength, while the technical indicators have lost their upward strength, but hold in positive territory. The risk can turn towards the downside on a break below the 45.00 figure, while an advance beyond 47.55 is required to confirm another leg higher for the upcoming …read more

Source:: FX Street