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LCrude: Fell on the drop of oil stocks survey

LCrude production advanced to the highest level in more than three decades and commodity price declines accelerated after the Federal Reserve (Fed) maintained its assurance to be “patient” on raising interest rates and boosted its assessment of the economy and labor market.

Yesterday the U.S. Energy Information Administration (EIA) released its latest survey. The report was expected to show a drop in LCrude stocks with estimates at 4.080 million barrels but the actual was worse than expected dropping only to 8.874 million barrels, triggering a sell-off.

LCrude is still in a strong bearish phase and fell during yesterday session closing near the low of the day. The commodity has fallen 17.53% since the start of the year but still holding the bottom at 44.18.

Expecting downward move to 42.58 on a break above below daily support at 44.18 (scenario 1) or a break above the daily support zone at 46.08 could push LCrude prices up to 50.0 (scenario 2).

LCrude is a CFD written over Light Crude futures.