Crude oil prices remain near their highs for 2017, and the commodity has been mostly flat for the last two days. According to a report by Reuters, traders claim that liquidity in the holiday season remains limited and trading has been subdued as a result. The crude oil bull market remains fundamentally supported as demand continues to grow faster than supply. While this remains true, the commodity is due for a short-term pull-back as prices run ahead of reality. This morning, Brent crude oil is looking overbought according to the Relative Strength Index on a weekly chart. Our medium-term outlook remains bullish.
WTI is currently trading just above $58.0. Brent crude is currently above $64.70.
Looking at US crude oil stocks, the most recent EIA figures (December 20) showed falling crude oil stocks and rising gasoline inventories. Crude oil inventories were lower than estimates (-6.5m vs. -3.8m expected). Gasoline stocks were up (+1.2m vs. +2.1m expected) while distillate stocks (+0.7m vs. -1m expected) were lower. Looking at reactions in markets, crude oil prices were mixed following the EIA report.