The price of crude oil stands at $62.55. This represents an increase of $0.82 or 1.33%. The day’s high reached $62.92. The lowest was at $62.05.
From a technical perspective, today’s price action was encouraging for buyers. The market remained above a swing floor which previously served as a barrier in August and September (see the yellow area in the graph above).
Although the price briefly fell below this level on October 1 and has spent much of the last two sessions trading below it, today marked a change. The market returned above the floor and, above all, was able to stay there. This resilience gives buyers renewed confidence that the level can once again serve as a base of support, opening the door for a possible surge higher if momentum builds.
For sellers, it would be necessary to get back below the old floor area between $61.45 and $61.94 to give them firm control from a technical perspective.
Weekly crude oil inventory data released earlier in the day showed an increase of 3.715 million barrels against expectations of 1.830 million. However, gasoline stocks showed a decline of -1.601M compared to the estimate of -0.690M and distillates showed a decline of -2.018M compared to expectations at -0.842M.
