This weeks API and EIA inventory data have again shown large inventory draws. Oil prices initially rallied on the news.
- Crude Oil Inventories Actual -7.208M Expected -2.629M
- EIA Weekly Distillates Stocks Actual -1.852M Expected -0.453M
- Gasoline Inventories Actual -1.015M Expected -0.614M
The rally took the market back into the upward trend channel we have seen since the beginning of July (see chart below)
Update 27th July 10am
With these volatile and unpredictable crude oil markets, there is so much news it is difficult to determine which has the greatest influence on price. To help remove some of the volatility from the charts, I have been using Renko most recently.
Below is an updated chart from yesterday. As can be seen, we are still holding withing the upward trend channel for July. At present we are bouncing along the bottom. This chart has been useful in July to help provide some structure to the market activity.
It is also apparent that this week we’ve been working off a nice upward trend line. Which provided strong support in yesterday’s volatile post-inventory move.
Update 27th July 19:00 (UK)
The market has remained within the renko channel and is now making it’s way again to the top of the channel. After a volatile morning session, as we tested the lows of the channel repeatedly, we’ve managed to hold that support, and rally.