WTI crude oil traded in a $1.25 range today and initially traded higher briefly on weekly US inventory data before fading afterwards. I think that you need to go back to yesterday to get some of the context of the rally. There was a big intraday rally in oil that looks to me like the private inventory numbers leaked (which is common).
That was compounded when today the EIA reported a 6.3 million barrel draw compared to a 0.8m build expected and oil jumped and then dropped.
Zoom out and oil is about where it was at the start of the week. I take that as something of a win for the bulls, given the declining Middle East tensions.
If oil can continue to consolidate for another week or two above $80, then there’s a good chance the bulls take a run at $90.
This article was written by Adam Button at www.forexlive.com.