Crude prices are up slightly this morning after rising yesterday. Crude prices rallied yesterday following the latest API report which shows falling crude stocks. Looking at the data, stocks fell by 6.4m barrels, ahead of the average estimate of -2.2m barrels. Following the API numbers, expectations for EIA numbers later today are increasing. As such, both WTI and Brent crude oil are rallying.
WTI is currently trading just above $56.40. Brent crude is currently above $62.80.
Looking at US crude oil stocks, the most recent EIA figures (November 15) showed rising crude oil stocks and falling gasoline inventories. Crude oil inventories were higher, despite estimates that expected falling stocks (+1.9m vs. -3.0m expected). Gasoline stocks were up (+0.9m vs. -1.5m expected) while distillate stocks (-0.8m vs. -1.2m expected) were down. Looking at reactions in markets, crude oil prices fell following the EIA report.
As crude oil rebounds on OPEC expectations, we are upgrading the commodity to bullish in the medium-term. Looking at various technical indicators on the weekly chart, both Brent and WTI are looking overbought.