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Crude Oil: Rallied although U.S crude inventories are at a record highs

Crude oil prices rallied on yesterday session after the Federal Reserve (Fed) said the economy continued to expand across most regions and sectors from early January through mid-February and with auto sales and consumer spending rising.

The market also received some support from Saudi Arabian Oil Minister, mentioning that he is expecting quick balance between supply and demand, adding that OPEC’s largest exporter sees consumption growing.

Yesterday the U.S Energy Information Administration (EIA) released its latest survey. The report was expected to show a decrease in crude oil stocks with estimates at 4.000 million barrels but the actual was worse than expected rising to 10.303 million barrels.

Crude oil initially fell but found enough buying pressure at the 50-day moving average to turn things back around and close near the high of the day. The commodity is in a recovery phase and is more than likely to move upward to a daily resistance. The stochastic is showing a bullish momentum.

Expecting upward move to a daily resistance at 55.84 on a break above previous day high at 51.90 (scenario 1).

LCrude is a CFD written over Light Crude futures.