The release of the EIA report created some volatility in November crude oil on Thursday, October 13, 2016, as the headline number showed crude oil inventories increasing for the first time in 6 weeks by 4.85 million barrels. Expectations ranged from an increase of 700,000 barrels to 2 million barrels.
Crude oil tanked on this number, trading down to support at 49.36 before rebounding as traders chose to focus on drawdowns in gasoline and distillates plus a large drawdown in Cushing, Oklahoma inventories. Gasoline inventories fell by 1.907 million barrels and distillates by a large 3.746 million barrels. Drawdowns were expected to be in the 900,000 to 1.5 million barrel range for the crude oil products.
Cushing, Oklahoma inventories fell by 1.318 million barrels, much lower than the expected build of 100,000 barrels. November crude oil traded to a new high for the day at 50.59 and then went to sleep for the remainder of the day as it traded in a tight range from 50.19 to 50.56. It settled at 50.44 and ended the session at 50.55, near the high of the day.
If crude oil can trade above trendline resistance at 50.74 on Friday we may see another attempt to run up to the June high at 51.67. There is trendline resistance at 51.90. A breakout above the trendline could send crude oil prices toward the $55 mark. Support is at 50.20, 49.36, 49.08, 48.30 and 47.41.
High 50.59
Low 49.36
Last 50.55
Daily Pivot Points for 10/14/16
R2 51.40
R1 50.97
PIVOT 50.17
S1 49.74
S2 48.94