Oil moves off the lows on DOE data
The price of oil has reacted positively to the DOE release which showed a drawdown of 3.6 million barrels in the past week. The headline reading was the second lowest of the year and the 3rd successive negative reading. Overall the report was a little mixed with large increases in Gasoline inventories and Distillates but the immediate reaction has been a pop high in both Brent Oil and WTI.
Brent is now trading at an interesting level technically and is testing the top of an Ichimoku cloud on a H1 timeframe. A break above here could signal a trend change and see the market attempt to recoup some of its recent declines with 53.75 and 55.10 possible targets for long positions.
A failure to break above here would keep the market under pressure and a break below 51.80 could pave the way for more declines.