Crude Oil prices closed at a three-month high yesterday adding to their impressive recent gains as the front month July contract (CLN20) has rebounded from a 17.27 low on April 28 to a 38.18 high posted yesterday. The 41.88 level provides resistance, per Charles Schwab.
“With the trade expecting a 3.2 million bbl build in inventories, the EIA measured an actual draw of 2.10 million bbl. That buoyed prices yesterday despite some negatives in the products categories.”
“Market analysts maintain that most OPEC+ members are in favor of extending the current level of cuts for another month. Saudi Arabia may be pushing for an even longer extension of up to three months.”
“The top of the sharp gap created on March 9 at 41.88 will offer near-term resistance. Beyond the 200-day moving average awaits at the 46.30 mark, followed by some old tops at 48.96. Selloffs will find first support at 35.38, followed by the 31.14 and 30.72 lows.”