According to the Weekly Petroleum Status Report released today by the U.S. Energy Information Administration (EIA), crude oil stock piles climbed as domestic production reached its highest level in 37 years.
Expectations for crude inventories were a 2.9-million-barrel decrease rather the EIA reported 2.2-million-barrel increase. The unexpected boost in production sent Crude Oil Futures (CL) on a notable ascent pushing the commodity into recovery mode after a sluggish start on Wednesday which followed by a minor drop on Tuesday.
Currently trading in the mid-57 range, Crude Oil Futures has been on a strong bullish run since July. November’s trading range marks highs not seen since January 2017.
What’s next for Oil?
While the market is still considered oversupplied, many experts agree the recent oil rally is based strictly on the fundamentals and its continuing rebalance after the instability of 2014. Geopolitical tensions in the Middle East continue to escalate, however the strains may not have lasting effects as market fundamentals will likely dominate. Further, the EIA expects the international benchmark for oil to remain at $56 per barrel in 2018.
The above chart, created for free using the award winning NinjaTrader platform, showcases Crude Oil Futures for 2017. Utilizing NinjaTrader’s horizontal line drawing tool, one can quickly determine recent intraday highs for any market. Additionally, the 200-day SMA, included with every download of NinjaTrader, clearly defines the Crude Oil market in bullish territory since mid-October.