It also has broken the and broke below the 10 today.
For a sustained move we will need a daily close below the 10 and later the 20 .
I have 3 levels which I think a possible spot for the DCL.
Level 1 50 , 300 - even in ligh decline we can have a DCL at this level (45$)
Level 2 200 , 100 EMA - most probably we will print the DCL at the 100 (43$)
Level 3 200 - in extreme case we might come down till the 200 (200 ) (40$)
All the indicators are showing into the lower prices.
crossed down and having the divergence.
left overbought trying to break below the 50
Slow showing exactly the same picture as at the ast DCL (21.03.)
It's throwing the curveball...
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) decreased by 0.9 million barrels from the previous week. At 530.6 million
barrels, U.S. crude oil inventories are at historically high levels for this time of year.
Total motor gasoline inventories increased by 0.6 million barrels last week, and are well
above the upper limit of the average range. Finished gasoline inventories increased while
blending components inventories decreased last week. Distillate fuel inventories
increased by 0.2 million barrels last week and are well above the upper limit of the
average range for this time of year. Propane/propylene inventories rose 1.2 million
barrels last week and are near the upper limit of the average range. Total commercial
petroleum inventories increased by 5.2 million barrels last week.
Location Week +/- "Week Ago" +/- "Year Ago"
Land 398 10 388 -427 825
Inland Waters 5 0 5 0 5
Offshore 21 0 21 -6 27
United States Total 424 10 414 -433 857
Gulf Of Mexico 21 1 20 -6 27
Canada 69 4 65 -67 136
North America 493 14 479 -500 993
Sorry for the formatting but here is last week's rig count.
FYI: Notice the rig count has increased in the US. Canada's count grew 2 weeks ago now that the fires have abated. In addition, we have some consolidation in the oil sector with announcements of new drilling. Vendors wells not in the RIG numbers that are being brought online, the DUC's (already drilled but not online wells) are coming online on an as needed basis to shore up the balance sheets of shale players. (There is a huge inventory of DUC wells in North America) We care about this because it serves the local North American market. Reducing the need for foreign imports. The US's largest importer is Canada, almost a million barrels a day, very little is imported from the rest of the world. In addition, we have announcements of large oil projects getting set to take place in Africa from the major European oil players so the long term trend for finding reserves will be satisfied as the more expensive projects drop offline.